Questions from General Economics

Q: According to Keynesian economics, what impact would a balanced budget amendment

According to Keynesian economics, what impact would a balanced budget amendment to the constitution requiring the federal government to balance its budget annually have on the economy?

Q: Which portion of the Laffer curve did the supply-siders argue

Which portion of the Laffer curve did the supply-siders argue we were located when they recommended tax cuts and predicted a rise in tax revenues? Where on the Laffer curve were we in fact located?

Q: According to Keynesians, when should the federal government run a deficit

According to Keynesians, when should the federal government run a deficit and when should it run a surplus?

Q: How could a greater budget deficit increase the trade deficit?

How could a greater budget deficit increase the trade deficit?

Q: Suppose the minimum point on the LRAC curve of a soft-

Suppose the minimum point on the LRAC curve of a soft-drink firm’s cola is $1 per liter. Under conditions of monopolistic competition, will the price of a liter bottle of cola in the long run be above...

Q: What happens to the multiplier if there is an increase in the

What happens to the multiplier if there is an increase in the marginal propensity to consume?

Q: What would likely happen to the level of economic activity if the

What would likely happen to the level of economic activity if the government took the necessary steps to reduce the deficit significantly in a relatively short period of time?

Q: When is the most appropriate time to reduce the deficit?

When is the most appropriate time to reduce the deficit?

Q: Is the tax imposed on cigarettes progressive, proportional or regressive?

Is the tax imposed on cigarettes progressive, proportional or regressive?

Q: What is the opportunity cost of government spending on servicing the interest

What is the opportunity cost of government spending on servicing the interest on the debt?