When a government reduces its deficits by increasing taxes, in the medium run,
A) output returns to potential.
B) output increases.
C) interest rate is higher.
D) IS curve shifts inward to the left.
A
Economics
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When dealing with negative externalities, what is meant by the term "internalizing an externality"?
What will be an ideal response?
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A minimum wage set above the equilibrium wage rate is a price
A) ceiling that results in a shortage of low-skilled labor. B) ceiling that results in a surplus of low-skilled labor. C) floor that results in a shortage of low-skilled labor. D) floor that results in a surplus of low-skilled labor.
Economics