Classical macroeconomic theory was discredited and gave way to the first Keynesian approach as a result of
A) the collapse of the gold standard at the outset of World War I.
B) the Great Depression of the 1930s.
C) the wage-price controls of World War II.
D) the rapid inflation of the late 1960s.
E) the switch from fixed to flexible exchange rates in the early 1970s.
B
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Recent research estimates that the short-run price elasticity of demand for gasoline in the U.S. is -0.3, and the long-run price elasticity of demand is -1.4. What happens if the government increases the federal gasoline tax?
A . Consumer expenditures on gasoline decrease over the short run and long run. B. Consumer expenditures on gasoline increase over the short run and decline over the long run. C. Consumer expenditures on gasoline decline over the short run and increase over the long run. D. Consumer expenditures on gasoline increase over the short run and long run.
Why are there two different views on the effect of taxation on labor supply in the United States?
What will be an ideal response?