Answer: The Nullification Crisis helped lead to the Civil War because it boiled sectional tensions between the North and he South to the surface. For instance, economic differences made it possible for the South to become dependent on the North for manufactured goods
Explanation:
John C. Calhoun, the Vice President of Andrew Jackson, supported South Carolina in their efforts to demolish the tariff
The tariff outraged Vice President John C. Calhoun. Originally, Calhoun supported tariffs because he believed they were a good source of revenue, and they did not promote the interests of one region over another. After the more tariffs were added in 1824
The correct answer is - D) It has contributed to a negative balance of trade.
The decreasing demand for US exports has had a negative effect on the trade deficit. This kind of situation results in an ever growing imbalance of trade, as the home made products are becoming less demanded, while the importing of goods and products is increasing, constantly making the trade deficit bigger.
That can eventually lead to an economic collapse, economic crisis similar to the Great Depression, as the country will not be able to work in that way forever. The GDP, both the nominal and the per capita, will suffer because of that, which will cause lot of unrest and opposition from the general public.
Answer:
A
Explanation:
With the elimination of competition, the cost of goods sky rocket because they can charge what they want and have no repricussions.
If an economy is experiencing inflation, aggregate demand is above full-employment and the government will increase spending and decrease taxes.
Answer: Option B
<u>Explanation:</u>
The inflationary gap occurs when total demand is greater than the level of the outcome at full employment. Therefore, inflationary gap is the estimation of the excess amount of total demand over total supply at full employment. The hike in the amount of discretionary income for both consumers and business results from the government’s expansionary fiscal policy.
When government or pivotal authority slit taxes the investment for capital improvement, new hiring or employee’s payment reimbursement is processed by businesses and consumers may spend more for buying goods. The government can also encourage economy by investing in infrastructure projects. Such actions can result in a price hike due to the high demand for goods and services.
