Answer:
The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.
Explanation:
Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.
This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.
If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.
The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.
Break even idk tbh bruh it’s said wrong answer
Answer:
gasoline is the correct answer.
Explanation:
Answer:
False.
Explanation:
Fringe benefits can be defined as series of additional benefits that are being offered by an employer to his or her employees. This benefits are usually non-cash compensations and as such completely different from the agreed-upon amount of money that the employees receive at regular intervals.
Hence, fringe benefits are always part of an employee's non-cash compensation package.
Some examples of fringe benefits are paid vacation, official cars, health insurance, social security, gym membership, free breakfast or lunch, transportation, housing, etc.
Answer:
The net pension asset/liability reported in the balance sheet at the end of the year is $24
Explanation:
find attached the solution