Investment spending aggregate demand potential output

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Q1. The taxing agency in your state would like to impose a sales tax in a way that minimizes deadweight loss. To achieve this goal it should tax

luxuries.

all goods equally.

necessities.

goods but not services.

Q2. To what extent does educational planning in the policy decision ought to be guided by economic considerations?

Q3. Determine whether each of the following increases, decreases, or remains unchanged in the short run: the market interest rate, the quantity of money demanded, investment spending, aggregate demand, potential output, the price level, and equilibrium real GDP.

Reference no: EM136774

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