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Alinara [238K]
3 years ago
8

Suppose that Congress enacts a significant tax cut with the expectation that this action will stimulate aggregate demand and pus

h up real GDP in the short run. In fact, however, neither real GDP nor the price level changes significantly as a result of the tax cut. What might account for this outcome?
Social Studies
1 answer:
jeka943 years ago
5 0

Tax reductions mean that more disposable income is available to people. But the increase in consumption depends on the marginal propensity to consume (MPC). If the MPC is too low, consumers will not consume the additional income made available to them through tax cuts.

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True.

Hope this helps..

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In ancient Athens, how were citizens compensated for their participation in the Assembly or on juries?
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FIRST: You had tell the person that you were going to start an action against them to be heard in "court". You had to bring witnesses with you so your witnesses could testify that the person was told why you were bringing an action, and that you had given this person a date, time, and location that they had to appear in court to defend themselves.

SECOND: You had to post a written notice near the courthouse that clearly stated the names of both parties, the charges, and the date, time, and location of your first trip to court on this action.

FIRST TIME IN COURT: The first trip gave both parties a chance to speak before a judge. If the judge felt there was enough cause, that judge would assign a trial date. That trial date had to be posted as well.

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THE TRIAL: Both sides presented their case. Then the jurors voted. Majority ruled.

PUNISHMENT: Punishments varied. If found guilty, both sides, the person bringing the charge and the person being charged, suggested a punishment. The jury could not choose a third choice. They had to choice one suggestion or the other.

Explanation:

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