the laffer curve belongs to which of the following school of economic thought supply-side when the government levies a $200 million tax on people's income and puts the $100 million back into the economy in the form of a spending program, such as new interstate highway construction, the level of real gdp expands by $100 million barter the direct exchange of the one good or service for another good or service, rather then for money (requires a coincidence of wants) money must serve as:ģ. mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula 1- equal increases in government spending and taxes will lead to an equal increase in the equilibrium level of real gdp When the economy enters a recession, automatic stabilizers create budget deficits automatic stabilizers "lean against the prevailing wind" of the business cycle because federal expenditures and tax revenues change as the level of real gdp changes unemployment compensation payments rise during a recession and thus reduce the severity of the recession according to suppl-side fiscal policy, reducing tax rates on wages and profits will reduce both unemployment and inflation supply-side economics calls for Lower taxes on businesses and individuals, Regulatory reforms to increase productivity, and government subsidies to promote technological advance. discretionary increases in transfer payments. Contractionary fiscal policy decrease government spending, increase taxes, decrease government spending and taxes equality which of the following is an example of expansionary fiscal policy? an increase in government spending in the _ range of the aggregate supple curve, expansionary fiscal policy causes aggregate _ to increase, which results in a higher price level and a higher equilibrium level of real gdp keynesian, supply an expansionary fiscal policy may include - increases in government spending.
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