In the short term, a decrease in taxes will have what effect on GDP and unemploy
ID: 1124310 • Letter: I
Question
In the short term, a decrease in taxes will have what effect on GDP and unemployment?
It will reduce unemployment and reduce GDP.
It will reduce unemployment and raise GDP.
It will raise unemployment and raise GDP.
It will raise unemployment and reduce GDP.
Money enables us to make comparisons of value among goods and services. This is the ________ use of money.
medium of exchange
store of value
standard of value
inflationary
Around 1995, businesses really started
further declines in productivity.
using computers to increase worker productivity.
a stagnant period of productivity.
the information age, which caused productivity slowdowns.
Which of the following would shift the supply curve for loans to the right, reducing short-term interest rates?
An increase in the amount of money the Fed makes available to banks.
An increase in margin requirements.
A reduction in discount lending by the Fed to banks.
An increase in the desire of consumers to borrow money.
Explanation / Answer
1> It will reduce unemployment and raise GDP.
Reason
In the short term, lesser government revenue will not affect government spending, thus it will reduce unemployment and increase GDP.
2> standard of value
Reason
Standard of Value= An agreed-upon value for a transaction in a country's medium of exchange, such as the dollar or peso.
3> using computers to increase worker productivity.
Reason
From that time, business started using computer technology.
4> An increase in the amount of money the Fed makes available to banks.