If Congress passed a one-time tax cut in order to stimulate the economy in 2014, and tax rate levels returned to their pre-2014 level in 2015, how should this tax cut affect the economy?
A) The tax cut would increase consumption spending more than would a permanent tax cut.
B) The tax cut would lower the price level in 2014.
C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut.
D) The tax cut would increase consumption spending less than would a permanent tax cut.
D
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In 2010, the Center for Disease Control has recommended that every child between the ages of 6 months and 18 years be vaccinated,
except those with a serious egg allergy. Dr. Berreman states,"By protecting ourselves from flu, we also protect our families and neighbors." Which is a solution that could be used to achieve a more efficient allocation of resources in the presence of this externality? A) The government could tax the producers of the flu vaccine. B) The government could tax the consumers of the flu vaccine. C) The government could offer a free flu vaccine clinic. D) The government could increase the price of flu vaccines.
A nation's growth rate will most likely ________ as it converges to a new, higher balanced growth path
A) speed up B) slow down C) maintain its current pace D) become negative