Figure 11-2
Which graph in Figure 11-2 best reflects a Keynesian's view of the short-run impact of an increase in the personal income tax rate?
a.
1
b.
2
c.
3
d.
4
c
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Which of the following is an example of the "shoe-leather costs" of inflation?
A) a rise in the cost of primary raw materials, like leather for shoes B) an artificial rise in the capital gains tax C) the need to take more trips to the bank D) miscalculations due to money illusion E) All of the above
If national income = $5,000 . autonomous consumption = $200, the MPC = 0.80, and intended investment demand is $800, then actual investment will
a. equal intended investment, and the economy will be in equilibrium b. be less than intended investment, and production and incomes will grow c. be greater than intended investment, and production and incomes will fall d. be less than intended investment, and production and incomes will fall e. be greater than intended investment, and production and incomes will grow