Econ2305 Study guides, Class notes & Summaries

1. If the government were to double taxes on people who earn more than $1 million per year, the deficit would disappear. a. True b. False 2. Refer to this graph. Which one of the following shocks could have caused this to happen? a. an increase in marginal tax rates b. an increase in the foreign exchange value of the dollar c. an increase in government spending d. an increase in wage rates or other resource costs 3. Money creates wealth. a. True b. False //See the video "How the Econ...

1. The largest source of revenue for the federal government is a. sales tax receipts b. individual income tax receipts c. corporate income tax receipts d. Social Security tax receipts 2. If the government enacts a tax on Uber corporate profits, which of the following is likely to occur? a. Uber riders will pay the tax in the form of higher fares. b. Uber drivers will pay the tax in the form of lower wages c. Uber shareholders will pay the tax in the form of reduced profit d. the tax w...

1. Refer to this graph. Which one of the following shocks could have caused this to happen? a. an increase in the amount of money in circulation b. a decrease in consumer confidence c. more government spending d. an increase in the supply of labor 2. P- price level, Q- real GDP, and U = the unemployment rate. If the economy is in equilibrium and then the AD curve shifts leftward, we expect to see the following outcome in the short run: a. P down Q down U up 3. Refer to this graph. Which on...

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