In the market for gasoline, an increase in the federal excise tax on gasoline would shift the supply curve up

For this question, assume that taxes are independent of income (i.e., the income tax rate is zero). Now suppose that fiscal policy makers wish to decrease equilibrium output by $500 billion. Further suppose that policy makers can choose one of the following two options: (1 ) change in government spending; or (2 ) change in taxes. Compare and explain the relative size of the changes in government

spending and taxes needed to obtain this desired change in output. What will be an ideal response?

The central question in economics is how to:

a. deal with the problem of scarcity. b. change government economic policy. c. change people's wants to match their needs. d. manage money and become wealthy.