Economists define disposable income (Yd )
What will be an ideal response?
as the income available to consumers after
paying taxes and receiving transfers:
Yd
= Y - T + TR
where T is the total of taxes paid in the economy and TR is the total of transfer payments
from governments to individuals.
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The misperceptions theory was originally proposed by ________ and rigorously formulated by ________
A) Milton Friedman; Robert Lucas B) John Maynard Keynes; Robert Solow C) Edward Prescott; Robert King D) James Tobin; Greg Mankiw
If there is limited commitment and the government is no better at collecting on its debts than is the private sector, then
A) Ricardian equivalence holds. B) the private sector can benefit from a government loan program. C) Ricardian equivalence does not hold. D) the Fisher relation does not hold.