Following the Kennedy tax cut in 1964, (Points : 1) the unemployment rate increa

Question

Following the Kennedy tax cut in 1964, (Points : 1)        the unemployment rate increased and the inflation rate decreased.
       the unemployment rate and the economic growth rate both increased.
       the unemployment rate decreased and the economic growth rate increased.
       the inflation rate increased and the economic growth rate decreased.
       the unemployment rate increased but the inflation rate and economic growth decreased.

Question 2. 2. Why do deficits persist even during the expansionary phase of the business cycle? (Points : 1)        Keynesian fiscal policy
       political difficulties in cutting government spending
       high taxes
       steadily growing defense spending
       the trade deficit increases the budget deficit

Explanation / Answer

1.the unemployment rate decreased and the economic growth rate increased.
2.steadily growing defense spending
3. borrowing reduced productive investment and future economic growth.
4. the trade deficit were taken into account.
5. transfer payments.
6.proportional.
7. at potential output.
8.a recognition lag
9.increase government spending or cut taxes
10.prices are such that producers know exactly how much to produce in the short run.

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---