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Shalnov [3]
2 years ago
11

Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. a) Busines

ses make investment plans many months in advance. b) Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president. c) The current tax system acts as an automatic stabilizer. d) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
Business
1 answer:
lbvjy [14]2 years ago
4 0

Answer:

D) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.

Explanation:

The Federal Reserve (FED) can respond to excessive pessimism among consumers and businesses by expanding the money supply and lowering interest rates. To deal with excessive optimism they can do the opposite, they can shrink the money supply and increase the interest rate.

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C, Dancing. Have a good rest of your day!!
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3 years ago
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Choose the correct statement. A. Income tax creates a deadweight loss in the markets for capital and labor. B. Income tax is a t
mixer [17]

Answer:

The correct answer is option A.

Explanation:

Income tax is a tax imposed by the government on the income earned by the individuals. This income can be from capital and labor. It creates a deadweight loss in the market for labor and capital.

Deadweight loss is the loss to economic efficiency and production caused by a tax. The imposition of a tax creates a tax wedge, this tax wedge leads to a deadweight loss. Deadweight loss due to income tax is the loss of purchasing power or reductions standard of living due to tax.  

The inefficiency or tax burden depends upon the elasticities of demand and supply. Whoever has the least elasticity will share most of the tax burden.

7 0
3 years ago
What is the difference between an elementary educator and a high school educator?
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3 years ago
The pharmaceutical company Merck's new drug Vioxx was a blockbuster, generating revenues of $2.5 billion a year by 2002 and grow
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Answer:

Core Values

Explanation:

In the given scenario, Merck has deviated from its core values which are dedicated to the healthcare sector and transparency of drug development. It manipulated and didn't made the side effects of the drug public during testing.

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