Exam 11: Monopolistic Competition, oligopoly, and Game Theory

According to information provided in the textbook,the federal government could easily eliminate budget deficits by raising taxes on millionaires.

-Refer to Exhibit 11-4.If a person's taxable income is $90,000,how much does he pay in taxes?

Which of the following illustrates the effectiveness lag?

-Use the information provided in Exhibit 11-4.What is the marginal tax rate on the 23,000th of dollar of taxable income earned?

Crowding out results in a decrease in

An expansionary fiscal policy will

Fiscal policy refers to

When a decrease in one or more components of private spending completely offsets an increase in government spending,there is

Between the data lag and the legislative lag falls the __________ lag.

If there is complete crowding out,the change in Real GDP that results from a given change in autonomous spending will be

Which of the following is not an example of crowding out?

According to Buchanan and Wagner,why is there a political bias toward expansionary fiscal policy rather than contractionary fiscal policy?

If the economy is on the downward-sloping portion of the Laffer curve,a(an)__________ in tax rates will __________ tax revenues.

Income tax revenues rise as income tax rates fall.It follows that the

The deficit that exists when the economy operates at full employment is called the __________ deficit.

Suppose government spending rises by $120 billion.It follows that if private expenditures

-Refer to Exhibit 11-1.The economy is currently at point 1.In this situation,Keynesian economists would most likely propose

A balanced budget occurs when

A "flat tax" is another term for __________ tax.

The lag between an increase in government spending and the impact of this increased spending on the economy is called the __________ lag.