Government spending affects aggregate demand directly, and tax changes affect aggregate demand indirectly. Therefore, changes in
a. taxes are ineffective in changing aggregate demand.
b. government spending affect aggregate demand more quickly than changes in taxes.
c. taxes are virtually useless as a stabilization tool.
d. government spending should be used with great caution.
b
Economics
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In the figure above, the Lorenz curve that shows the richest 20 percent of households receiving 40 percent of all income is
A) curve A. B) curve B. C) curve C. D) curve D.
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Explain who gains and who loses from an import quota and why the losses exceed the gains
What will be an ideal response?
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