- 13.1: Define:a. fiscal policyb. expansionary fiscalpolicyc. contractionar...
- 13.2: What is contractionaryfiscal policy, and why is itlikely to be used?
- 13.3: Give a numerical exampleof complete crowding out.
- 13.4: Even though changes ingovernment spendingprincipally affect thedema...
- 13.5: Is expansionary fiscalpolicy always effective at increasing total s...
- 13.6: Someone says, If thefederal government cutsincome tax rates, tax re...
- 13.7: What effect, if any, do youthink stagflation plays inthe reelection...
- 13.8: Income minus taxes is ______.
- 13.9: If the government increases its spending or lowerstaxes, it is impl...
- 13.10: If the government decreases its spending orraises taxes, it is impl...
Solutions for Chapter 13: Fiscal Policy
Full solutions for Economics New Ways of Thinking | 1st Edition
total revenue divided by the quantity sold
average tax rate
total taxes paid divided by total income
a group of firms acting in unison
a visual model of the economy that shows how dollars flow through markets among households and firms
constant returns to scale
The property whereby long-run average total cost stays the same as the quantity of output changes
the study of how society manages its scarce resources economies of scale the property whereby long-run average total cost falls as the quantity of output increases
the property of a good whereby a person can be prevented from using it
a good for which an increase in the price raises the quantity demanded
spending on goods and services by local, state, and federal governments
a good for which, other things being equal, an increase in income leads to a decrease in demand
a tax that is the same amount for every person
the increase in total cost that arises from an extra unit of production
the increase in output that arises from an additional unit of input
claims that attempt to prescribe how the world should be
the business practice of selling the same good at different prices to different customers
production possibilities frontier
a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
the quantity of goods and services produced from each unit of labor input
a tax for which highincome taxpayers pay a larger fraction of their income than do low-income taxpayers
the tax revenue that the government has left after paying for its spending
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society