Keynesian Macroeconomists Believe That the Time It Takes for Falling

question 187

Multiple Choice

Keynesian macroeconomists believe that the time it takes for falling wages and prices to eliminate a recessionary gap is __________ enough to say that the economy is __________.

• A) long; not self-regulating
• B) long; self-regulating
• C) short; not self-regulating
• D) short; self-regulating

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Definitions:

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, placing a heavier burden on wealthier taxpayers.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount subject to tax.

Lump-Sum Tax

A tax of a fixed amount that does not vary with the taxpayer's income or activities.

Marginal Tax Rate

The tax rate that applies to the next dollar of taxable income, indicating how much of any additional income will be taken in taxes.