What Was the Means by Which the Townsend Plan Was

question 71

Multiple Choice

What was the means by which the Townsend Plan was to be funded?

• A) a working man's tax on all earned income
• B) a national sales tax of 2 percent
• C) a capital gains tax of 10 percent on all those who earned over $10,000
• D) an assessments on employers of $1,000 a year for each employee

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Definitions:

Aggregate Demand Curve

Curve showing planned purchase rates for all goods and services in the economy at various price levels.

Price Level

An index that measures the average price of goods and services in an economy at a specific time.

Aggregate Supply Curve

A graphical representation that shows the total quantity of goods and services that producers in an economy are willing to produce and sell at different price levels.

Horizontal Segment

In graphical analyses, a part of a line or curve that runs parallel to the horizontal axis, indicating constant value or absence of change.