An elected official will:
a. tend to favor policies that wield benefits in the short run and impose costs in the long run
b. tend to favor policies that impose costs in the short run and yield benefits in the long run
c. both of the above
d. neither of the above
Answer: a. tend to favor policies that wield benefits in the short run and impose costs in the long run
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According to Ricardian Equivalence, a tax cut will not have a material impact on consumption spending since ________
A) households will simply save the monies received from the tax cut B) the value of the tax multiplier is one C) a tax cut must lead to an increase in prices, which leaves the real value of consumption unchanged D) a decrease in taxes will be balanced, under current federal law, by a government spending increase
Which of the following is an outcome of advertising for a monopolistically competitive firm? a. Long-run average costs shift downward
b. The firm's demand curve becomes flatter and shifts inward. c. The firm's demand curve keeps the same slope and shifts inward. d. Long-run average costs shift upward.