Which of the following is not a problem with examining the progressivity of the tax system over a lifetime?
a. The uncertainty over future tax code changes make forecasting of future taxes nearly impossible.
b. Such accounting does not consider what the taxes are spent on.
c. The fact that poor people do not live as long as wealthy individuals.
d. Accurately estimating who is actually paying taxes.
c
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If the price of inputs falls and the government deficit rises:
a. Aggregate demand and aggregate supply rise. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls, and aggregate supply rises. d. Aggregate demand rises, and aggregate supply falls. e. None of the above.
Which of the following will shift an economy's production possibilities curve outward?
A. An improvement in technology B. An increase in the unemployment rate C. A decrease in land, labor or capital D. A decrease in the unemployment rate