Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 30, Problem 47CTQ
What is a potential problem with a temporary tax increase designed to increase aggregate
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
what is a potential problem with a temporary tax decrease desighned to increase aggregate demand if people know that it is temporary?
What is a potential problem with a temporary taxdecrease designed to increase aggregate demand if peopleknow that it is temporary?
Assuming the economy is in long run and the govt implemnents a tax cut of $420 Billion, there is no crowding out, and marginal propensity to consume is 0.9 what's the initial and total effect of the tax reduction on aggregate demand? Is there a formula to calculate this?
Chapter 30 Solutions
Principles of Economics 2e
Ch. 30 - When governments run budget deficits, how do they...Ch. 30 - When governments run budget surpluses, what is...Ch. 30 - Is it possible for a nation to run budget deficits...Ch. 30 - Suppose that gifts were taxed at a rate of 10 for...Ch. 30 - If an individual owns a corporation for which he...Ch. 30 - What taxes would an individual pay if he were...Ch. 30 - The social security tax is 6.2 on employees income...Ch. 30 - Debt has a certain self-reinforcing quality to it....Ch. 30 - True or False: Federal spending has grown...Ch. 30 - What is the main reason for employing...
Ch. 30 - What is the main reason for employing expansionary...Ch. 30 - In a recession, does the actual budget surplus or...Ch. 30 - What is the main advantage of automatic...Ch. 30 - Explain how automatic stabilizers work, both on...Ch. 30 - What would happen if expansionary fiscal policy...Ch. 30 - What would happen if contractionary fiscal policy...Ch. 30 - Do you think the typical time lag for fiscal...Ch. 30 - How would a balanced budget amendment affect a...Ch. 30 - How would a balanced budget amendment change the...Ch. 30 - Give some examples of changes in federal spending...Ch. 30 - Have the spending and taxes of the U.S. federal...Ch. 30 - What are the main categories of U.S. federal...Ch. 30 - What is the difference between a budget deficit, a...Ch. 30 - Have spending and taxes by state and local...Ch. 30 - What are the main categories of U.S. federal...Ch. 30 - What is the difference between a progressive tax,...Ch. 30 - What has been the general pattern of U.S. budget...Ch. 30 - What is the difference between a budget deficit...Ch. 30 - What is the difference between expansionary fiscal...Ch. 30 - Under what general macroeconomic circumstances...Ch. 30 - What is the difference between discretionary...Ch. 30 - Why do automatic stabilizers function...Ch. 30 - What is the standardized employment budget?Ch. 30 - What are some practical weaknesses of...Ch. 30 - What are some of the arguments for and against a...Ch. 30 - Why is government spending typically measured as a...Ch. 30 - Why are expenditures such as crime prevention and...Ch. 30 - Why is spending by the U.S. government on...Ch. 30 - Excise taxes on tobacco and alcohol and state...Ch. 30 - What is the benefit of having state and local...Ch. 30 - In a booming economy, is the federal government...Ch. 30 - Economist Arthur Laffer famously pointed out that,...Ch. 30 - Is it possible for a nation to run budget deficits...Ch. 30 - How will cuts in state budget spending affect...Ch. 30 - Is expansionary fiscal policy more attractive to...Ch. 30 - Is Medicaid (federal government aid to low-income...Ch. 30 - What is a potential problem with a temporary tax...Ch. 30 - If the government gives a 300 tax cut to everyone...Ch. 30 - Do you agree or disagree with this statement: It...Ch. 30 - During the Great Recession of 20082009, what...Ch. 30 - A government starts off with a total debt of $3.5...Ch. 30 - If a government runs a budget deficit of 10...Ch. 30 - Specify whether expansionary or contractionary...
Additional Business Textbook Solutions
Find more solutions based on key concepts
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (12th Edition)
Which of the following transactions will require a journal entry? Indicate if it will be a debit or a credit, a...
Principles of Accounting Volume 1
What are some of the problems with using the CPI?
Construction Accounting And Financial Management (4th Edition)
How is process costing for a single manufacturing department different from a manufacturing company with multip...
Principles of Accounting Volume 2
Prepare a production cost report and journal entries (Learning Objectives 4 5) Vintage Accessories manufacture...
Managerial Accounting (5th Edition)
Define costvolumeprofit analysis.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Knowledge Booster
Similar questions
Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?
arrow_forward
Only typed answer and don't use chat gpt
The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.
A.) expansionary fiscal policy; an increase in corporate taxes
B.) contractionary fiscal policy; a reduction in taxes
C.) contractionary fiscal policy; an increase in taxes
D.) expansionary fiscal policy; an increase in government spending
arrow_forward
If the economy is producing in the intermediate zone of the ad/as would you suggest discretionary or automatic fiscal policy? Explain.
arrow_forward
Listen: Podcast: The Economics of Fiscal Stimulus - Econ EveryDay
The Covid-19 pandemic shifted the aggregate supply and aggregate demand curves to the left.
Did that increase or decrease real GDP, employment, and inflation rate?
Explain your answer.
The website - https://econeveryday.com/podcast-the-economics-of-fiscal-stimulus/
arrow_forward
What is the Laffer Curve, and how does it relate to supply-side economics? Why is determining the economy’s location on the curve so important in assessing tax policy?
arrow_forward
Some politicians have suggested that the United States enact a constitutional amendment requiring that the federal government balance its budget annually. Such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession.
This is because when the economy enters a recession,
???
arrow_forward
What specific fiscal policy tools would you use to stimulate aggregate demand and how?
also include the references for my research later on.
arrow_forward
Explain why increased government spending of, for example, $15 billion, will have a different impact on aggregate demand than a $15 billion tax cut.
arrow_forward
Consider two policies-a tax cut that will last for only one year, and a tax cut that is expected to be permanent. which policy will stimulate greater spending by consumers? which is policy will have the greater impact on aggregate demand? explain
arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning