The term voodoo economics is a term used by the

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Macroeconomics: Principles & Policy
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Chapter 9 / Exercise 2
Macroeconomics: Principles & Policy
Baumol/Blinder
Expert Verified
23. The term 'voodoo economics' is a term used by the proponents of supply side economics trying to explain to its critics that lower tax rates will result in higher tax revenue. A) True B) False Correct Answer(s): False Table for Individual Question Feedback Points Earned: 0.0/1.5
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Macroeconomics: Principles & Policy
The document you are viewing contains questions related to this textbook.
Chapter 9 / Exercise 2
Macroeconomics: Principles & Policy
Baumol/Blinder
Expert Verified
24. Barro is considered to be a supply side economist which is consistent with his idea that we should eliminate the corporate income tax. Table for Individual Question Feedback Points Earned: 1.5/1.5
25. According to the table depicting the effective tax rate on capital for 2007, the only country that has a higher effective tax rate on capital is Greece. Table for Individual Question Feedback Points Earned: 0.0/1.5
26. According to our discussion of supply side economics, there are positive aggregate demand side effects and positive supply side effects, similar to what happened during the new economy.
Table for Individual Question Feedback Points Earned: 1.5/1.5
27. We argued that the tax multiplier is higher in absolute value than the government spending multiplier. A) True B) False Correct Answer(s): False Table for Individual Question Feedback Points Earned: 1.5/1.5
28. The more the Fed accommodates shocks to money demand, the larger the (government) spending multiplier. Table for Individual Question Feedback Points Earned: 0.0/1.5
29. According to the Congressional Budget Office (CBO), the stimulus package worked in terms of creating jobs, lowering unemployment, and raising GDP.
Table for Individual Question Feedback Points Earned: 1.5/1.5
30. Spending by local governments to stimulate or slow down their local economies is an example of fiscal policy. Table for Individual Question Feedback Points Earned: 0.0/1.5
31. When talking about tax multipliers using tax rates instead of the more simple lump sum taxes, we argued that the social security tax cut resulted in a higher tax multiplier. A) True B) False Correct Answer(s): True Table for Individual Question Feedback Points Earned: 1.5/1.5
32. When we add the marginal propensity to import to our model, the spending multiplier falls. In fact, the higher the marginal propensity to import, the smaller the spending multiplier, all else constant.
Table for Individual Question Feedback
Points Earned: 1.5/1.5

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