Explain some important situations where direct controls have a clear advantage over taxes
1 . Where an emission is so dangerous that it must be prohibited altogether.
2 . Where a sudden change in circumstances calls for prompt and substantial changes
3 . Where effective and dependable pollution-metering devices have not been invented or are prohibitively costly to install and operate.
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According to the traditional Keynesian analysis, if the government increases spending by $10 million, then
A) consumption will increase, and so total expenditures will increase by more than $10 million. B) consumption will decrease, and so total expenditures will increase by less than the $10 million. C) consumption will remain the same, and so total expenditures will increase by exactly $10 million. D) consumption will increase or decrease, and so total expenditures will increase or decrease depending on the change in consumption.
Parts of the unemployment rate which might increase when labor market conditions are better do include: a. Those who voluntarily quit existing jobs
b. Those who are newly entering the labor force. c. Those who are re-entering the labor force after leaving it earlier. d. All of the above.