McqMate

Q. |
## Assuming a simultaneous deduction in income taxes and transfer payments of $50 billion, then aggregate disposable income will |

A. | be higher than before |

B. | be lower than before |

C. | remain constant |

D. | none of the above |

Answer» C. remain constant |

1.8k

0

Do you find this helpful?

3

View all MCQs in

Managerial EconomicsNo comments yet

- Assume that the actual deficit is $150 billion with the economy well below potential output and that the level of economic activity rose to its potential level while tax revenues increased by $50 billion and transfer payments fell by $20 billion. Then, what is the structural deficit?
- Suppose that the MPC out of disposable income was 0.8 and the tax function for a given economy was T= -30+0.25Y. an increase in the intercept of the tax function of 10 units(from -30 to -20 would cause equilibrium income in the simple Keynesian model to fall by
- If the tax function is T= t0+t1y where t1 equals 1/3,and if the marginal propensity to consume out of disposable income is 3/4 , then the change in GDP oer unit change into t0 (∆Y/∆ t0) will be
- Suppose that the MPC out of disposable income was 0.8 and the marginal tax rate was 0.25 for a given economy. In this case, the value of the tax multiplier in the simple Keynesian model would be
- According to real business cycle theory an increase in taxes
- The aggregate production function for real business cycle models is shown as
- In the simple Keynesian model, if the tax function is given by T=0.15Y and the consumption function is C= 50 + 0.7 YD then a 10-unit ncrease in government spending would increase equilibrium income by
- The study of international trade and national income is part of
- If the income and substitution effect of a price increase works in the same direction the good whose price has changed is a
- From the net tax function: T=t0+t1Y,where t0<0 and t1>0, it follows that, as income rises