1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ostrovityanka [42]
3 years ago
14

If the Ricardian equivalence theorem LOADING... is not​ relevant, then an​ income-tax-rate cut A. will result in a multiple time

s higher increase in equilibrium real GDP in the long​ run; however, a​ tax-rate reduction will increase the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be more stable. B. will result in a multiple times higher decrease in equilibrium real GDP in the long​ run, however; a​ tax-rate reduction will reduce the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be more stable. C. will result in a multiple times higher increase in equilibrium real GDP in the short​ run; however, a​ tax-rate reduction will reduce the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be less stable. 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.
Business
1 answer:
LenKa [72]3 years ago
6 0

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.

You might be interested in
Which factor makes an IRA superior to a regular stock portfolio for saving for retirement?
Semenov [28]
I think the answer to the factor that makes an IRA superior to a regular stock portfolio for saving for retirement is that <span>IRAs usually include employer contributions. The answer is letter D.</span>
4 0
3 years ago
Read 2 more answers
A marketing company wants to estimate the proportion of consumers in a certain region of the country who would react favorably t
Sindrei [870]

The closest to the minimum number of consumers needed to obtain the estimate with the desired precision is (b) 271

Explanation:

When the prior estimate of population proportion is not given , then the formula to find the sample size is given by :-

n=0.25(\frac{z^{*} }{E} )^{2}

where E = Margin of error.

z* = Critical z-value.

As per given , we have

E = 5%=0.05

Confidence level = 90%

The critical value of z at 90% is 1.645  (By z-table)

Put all values in the formula , we get

n=0.25(1.645/0.05)²

n=0.25(32.9)²

n=270.6025≈271

Thus, the minimum sample size needed = 271

Hence , the correct answer is 271 .

8 0
3 years ago
Grengens, a European chocolate manufacturer, received several complaints from customers about the quality of its product when it
Kay [80]

Answer:

Letter E is correct. <u>Product disapprobation.</u>

Explanation:

In this matter, we can say that the factor that probably dictated the adaptation of Greengens products in this scenario was the product's disapproval.

This failure of the chocolate company Greengens was due to some management error and analysis of the market in question. When entering an international market, the company must analyze a series of important variables for the product to be accepted by the local public, no matter how standardized the product is, there are some local characteristics that should not be disregarded, such as local values, culture , needs, tastes, etc., which means that an adaptation of a product or service is necessary for it to be actually accepted and consumed in a given country.

4 0
4 years ago
Cadets at West Point spend time during the summer learning about the branches of the Army like aviation, infantry, ordnance, fin
vovikov84 [41]

Answer:

b. rotation

Explanation:

  • correct answer is rotation because Job rotation is a management approach where employees are regularly moved between two or more tasks or jobs to expose them to all work areas of the company.
  • This is a pre-planned approach aimed at testing the skills and capabilities of employees so that they can be implemented. In addition, it reduces the change of job and gives them a broader experience and helps them gain more insight.
  • Job rotation is a well-planned exercise to reduce boredom and learn the employee's hidden ability to do the same thing. This process is useful for management and employees
8 0
3 years ago
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions.Category
Ymorist [56]

Answer:

a. $343.7 billion

b.  $331.9 billion

c. $334.1 billion

Explanation:

The computation is shown below:

a. For GDP

GDP = Personal consumption expenditures + Government purchases + Net private domestic investment + Consumption of fixed capital + net exports

where,

Net exports = U.S. exports of goods and services - U.S. imports of goods and services

= $17.8 - $16.5

= $1.3 billion

So, the GDP would be

= $219.1 + $59.4 + $52.1 + $11.8 + $1.3

= $343.7 billion

b. For NDP

NDP = GDP - Consumption of fixed capital or depreciation

        = $343.7 - $11.8

        = $331.9 billion

c. For NI

NI = GDP + Net foreign income

    = $331.9 billion + 2.2 billion

    = $334.1 billion

All values are in billions

         

5 0
3 years ago
Other questions:
  • Crimp corporation uses direct labor-hours in its predetermined overhead rate. at the beginning of the year, the estimated direct
    15·1 answer
  • Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement For the Year Ended
    7·1 answer
  • For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which
    13·1 answer
  • Digital marketing isn't just about selling your products internationally. It can be used to great effect for local businesses. W
    13·1 answer
  • Keyser Beverage Company reported the following items in the most recent year.
    13·1 answer
  • What problems might robert encounter in comparing these companies to one another on the basis of their​ ratios? ​(select all the
    11·1 answer
  • Easton Corporation is involved in the evaluation of a new computer-integrated manufacturing system. The system has a projected i
    6·1 answer
  • Luke, an HR manager at Ford, argues that health insurance should cost more for smokers or overweight people. Those are personal
    9·1 answer
  • On January 1, 2018, ABC purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a
    14·1 answer
  • In long-run equilibrium, monopolistically competitive firms will show a(n) _____.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!