Suppose the economy is in long-run equilibrium and the government decreases taxes. What causes the economy...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose the economy is in long-run equilibrium and the government decreases taxes. What causes the economy to move from the new short-run equilibrium eventually to a long-run equilibrium? A. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the left B. LRAS will shift to the left C. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the right D. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the left E. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right Suppose the economy is in long-run equilibrium and the government decreases taxes. What causes the economy to move from the new short-run equilibrium eventually to a long-run equilibrium? A. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the left B. LRAS will shift to the left C. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the right D. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the left E. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below E Nominal wages prices and perceptio... View the full answer
Related Book For
Posted Date:
Students also viewed these psychology questions
-
Two rotating rods are connected by slider block P. The rod attached at A rotates with a constant clockwise angular velocity A . For the given data, determine for the position shown (a) The angular...
-
Explain why communication is essential in an organization. Explain the ways that effective communication improves employee trust and engagement. Focus on comparing/contrasting two types of channels...
-
The XYZ, Inc. reported $50 million of taxable income. Its federal tax rate was 21% (ignore any possible state corporation taxes). Assume the firm receives an additional $1 million of interest income...
-
In Rev. Rul. 81-301, which of the following is not a factor considered by the IRS in determining whether a partner receives payments in her capacity as a partner, or is instead acting as a third...
-
Below are transactions for Wolverine Company during 2012. a. On December 1, 2012, Wolverine receives $3,000 cash from a company that is renting office space from Wolverine. The payment, representing...
-
In acting rationally, people respond to _________.
-
Assume that you have used regression to calculate the beta for a stock you are considering purchasing, and have gotten a value of 0.4. If you wanted to use the adjustment procedure outlined in this...
-
Stave Company invests $10,000,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates...
-
Assigm8: Problem 6 (1 point) Find the vector in AB R2 given in the figure. AB help (vectors) == 5 9 5 A 4 3 2 * -6-5-4-3-2-1 1 2 3 4 5 6 -1 -2
-
Forecasting with the Parsimonious Method and Estimating Share Value Using the ROPI Model Following are income statements and balance sheets for Cisco Systems. Cisco Systems Consolidated Statements of...
-
Consider a project with an initial investment of $60,000, a 6-year useful life (and study period), and a $10,000 salvage value. You expect an annual net revenue of $15,000 (before tax), a MARR before...
-
nd The adjusted trial balance for Speedy Courier as of December 31 follows. Debit Credit $ 58,000 Cash Accounts receivable Interest receivable Notes receivable (due in 90 days) Office supplies...
-
A buyer with a 20-year, $419,000 loan at a 4.25% interest rate has a monthly principal and interest payment totaling $2,594.59. If $1,483.95 is interest, how much is applied toward principal for that...
-
What are the potential effects of rising interest rates on the housing market and mortgage lending, and how might this impact the demand for refinancing, home equity loans, and new mortgage...
-
Suggest that management accountants must now take a more active role in sustainable development. The CIMA report on "Sustainability and the role of the management accountant" focuses on the...
-
If X, X2,..., Xn constitute a random sample of size n from a population given by f(x; 0) = 2(0 - x) 02 find an estimator for by the method of moments. g(x; 0,8) = = Question 2 If X, X2,..., Xn...
-
Berkshire Hathaway Inc. Enter the following transactions in the appropriate accounts: 20X8 Jun 1 Started business with $120,000 cash. Jun 2 Paid $108,000 of the opening cash into the bank. Jun 4...
-
A copper wire (density = 8.96 g/cm 3 ) has a diameter of 0.25 mm. If a sample of this copper wire has a mass of 22 g, how long is the wire?
-
You are given the following information for the commodity market, in which taxes, planned investment, government spending on goods and services, and net exports are autonomous, but consumption and...
-
A firm has the choice of hiring either permanent or temporary employees when it needs to expand its output. If the firm hires temporary workers, it does not have to pay severance costs if it lets the...
-
What is meant by the Goldilocks economy of the late 1990s? How do you explain its main features?
-
Refer to Exhibits 4-4 and 4-5. Suppose manufacturing costs were the same, but there was an ending work-in-process inventory of $3 million. The cost of the completed goods would therefore be $37...
-
Ithalid Company began business on January 1, 2006, with assets of $150,000 cash and equity of $150,000 capital shares. In 2006 it manufactured some inventory at a cost of $60,000, including $12,000...
-
Blackstone Tools produced 12,000 electric drills during 2006, although expected production was only 10,500 drills. The companys fixed overhead rate is $7 per drill. Absorption-costing operating...
Study smarter with the SolutionInn App