________ Holds That Those with Equal Ability to Pay Should

question 261

Multiple Choice

________ holds that those with equal ability to pay should bear equal tax burdens.

• A) The benefits-received principle
• B) Horizontal equity
• C) Vertical equity
• D) Progressive tax theory

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Definitions:

Long-Run Aggregate-Supply

The total quantity of goods and services that producers in an economy are willing and able to supply at a full employment level, regardless of the price level, in the long term.

Long-Run Phillips

Describes the relationship between unemployment and inflation over a longer period, suggesting that in the long run, there is no trade-off between inflation and unemployment.

Natural Rate

The long-term rate of unemployment or economic output at which the economy stabilizes, without causing inflation.

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting interest rates to promote economic growth and stability.