Briefly describe the tradeoff between equity and efficiency of tax systems using a few examples
Although most Americans agree that equity and efficiency are the two most important goals of a tax system, the two goals often conflict. The most efficient tax is a lump-sum tax, yet many would call it the most unfair tax. Most people would agree that a progressive tax is more fair than a lump-sum tax, yet it distorts decisions and creates deadweight losses.
Economics
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Discretionary fiscal policy:
What will be an ideal response?
Economics
The lag length in a VAR using the BIC proceeds as follows: Among a set of candidate values of p, the estimated lag length xxxis the value of p
A) For which the BIC exceeds the AIC B) That maximizes BIC(p) C) Cannot be determined here since a VAR is a system of equations, not a single one D) That minimizes BIC(p)
Economics