Which of the following can make the unemployment rate rise?
A. A decrease in the number of people with jobs.
B. A decrease in the number of people neither working nor looking for work.
C. An increase in the number of people who are looking for work.
D. An increase in the number of people who are looking for work and a decrease in the number of people with jobs.
Answer: D
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Suppose policy makers wish to increase steady state consumption per worker. Explain what must happen to the saving rate to achieve this objective
What will be an ideal response?
Vertical equity states that taxpayers with a greater ability to pay taxes should
a. contribute a decreasing proportion of each increment in income to taxes. b. contribute a larger amount than those with a lesser ability to pay. c. be less subject to administrative burdens of a tax. d. be less subject to tax distortions that lead to deadweight losses.