Briefly explain how a change in the personal income tax rate affects aggregate demand
What will be an ideal response?
Changes in the personal income tax rate affect aggregate demand through consumption. Consumption is a major component of aggregate demand. For example, a decrease in the personal income tax rate increases disposable income, which in turn increases consumption.
Economics
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If real GDP is $1,200 billion, the population is 60 million, and aggregate hours are 80 billion, labor productivity is
A) $6.67 an hour. B) $15.00 an hour. C) $150 an hour. D) $5.00 an hour. E) $20,000.
Economics
With an income elasticity of demand of 0.5, cigarettes are an example of
a. a normal good b. an inferior good c. irrational demand d. complements to health care e. unitary elasticity
Economics