Which policy will have a greater impact on aggregate demand

Assignment Help Business Economics
Reference no: EM131974172

Consider two policies - a tax cut that will last for only one year and a tax cut that is expected to be permanent

1. Which policy will stimulate greater spending by consumers?

2. Which policy will have a greater impact on aggregate demand?

3. Would it make any difference if the tax cut were a reduction in the GST rate or a reduction in income tax rates

Reference no: EM131974172

Questions Cloud

About the forms of universal life insurance : Which of the following statements about the forms of universal life insurance is (are) true?
When must an insurable interest exist in life insurance : When must an insurable interest exist in life insurance? All of the following are reasons supporting the “buy term life and invest the difference” EXCEPT
What is your expected one-year rate of return : A 9 year, 9.8% coupon bond is callable at 103% of par and does not have call protection. What is your expected one-year rate of return if you buy the bond today
Reason for purchasing whole life insurance : Which of the following would not be a reason for purchasing Whole Life insurance?
Which policy will have a greater impact on aggregate demand : Consider two policies - a tax cut that will last for only one year and a tax cut that is expected to be permanent
Prepare a schedule indicating cash payments for selling : Prepare a schedule indicating cash payments for selling and administrative expenses for October, November, and December. Enter amounts as positive numbers.
Prepare the adjusting entry at december thirty first : Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate adjusted balance.
Discuss the advantages of lease versus purchase : Discuss the advantages and disadvantages of lease versus purchase. Make a decision about lease or purchase and present that option to Assistant Administrator.
How much will you have in your bank account on august : How much will you have in your bank account on August 1st of the same year? Consider an interest rate of 12% per year.

Reviews

Write a Review

Business Economics Questions & Answers

  Identify the benefits and limitations of the circuit

Compare the circuit switching to the packet switching. Identify the benefits and limitations of the circuit switching and packet switching

  Using date from the current population survey

Using date from the Current Population Survey, the U.S. Bureau of labor Statistics recently announced that the U.S. November unemployment rate was 5.8 percent, the Northwest Arkansas metro area November unemployment rate was 3.9 percent, and that U.S..

  Distinction between safety and health

The distinction between safety and health is based on the distinction between _______. Employers can defend themselves from responsibility for a workplace accident by claiming that _______. The requirement of truthful labeling is an instance of the m..

  Design a python a program that utilizes

Design a Python a program that utilizes a loop to read a set of five floating-point values from user input. Ask the user to enter the values, then print

  Firms production decision in both the short-run

Consider a firm’s production decision in both the short-run and long-run. Explain what type of input costs might be fixed in the short-run and which might be variable in the long-run. Provide one example of each.

  Choose a product or a product line that comes from a small

choose a product or a product line that comes from a small to medium sized company that may or may not already be

  Suppose the cost of technology adoption per user

Suppose the value of technology adoption to a given user is log(n) where n is the total number of users who have already adopted the technology. Suppose the cost of technology adoption per user is c. Assume there are N users in the market.

  Reflect the desires of the populace

As the United States becomes wealthier, and as medical care interventions become more effective in improving health, spending more on our national wealth on medical care is good, not bad.'

  A nation can achieve higher economic growth

A nation can achieve higher economic growth if:

  How much economic surplus

The most you would be willing to pay for having a freshly washed car before going out on a date is $15. The smallest amount for which you would be willing to wash someone else’s car is $12.50. You are going out this evening and your car is dirty. How..

  Why are local tax bases more elastic than national tax bases

Why are local tax bases more elastic than national tax bases? Give an example, and explain other possibilities that may make the tax base more elastic.

  Inverse relationship between price level and the real output

Why substitution effect does not apply to AD the way it is in the demand for a single product? Does Income effect apply to AD as it is in the demand for a single product? What do we consider when we explain the inverse relationship between price leve..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd