The Romer and Romer 2010 Paper in the American Economic

question 121

Multiple Choice

The Romer and Romer 2010 paper in the American Economic Review found that tax changes that are made to promote long-run growth or to reduce an inherited budget deficit tend to result in

• A)a strong positive relationship between taxes and output GDP.
• B)a weak positive relationship between taxes and output GDP.
• C)an uncertain correlation between taxes and output GDP.
• D)a strong negative relationship between taxes and output GDP.

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Definitions:

Anal Stage

A phase in Freud's psychosexual development theory, occurring from ages 18 months to three years, when a child's focus is on controlling bladder and bowel movements.

Obstinate

Showing stubbornness and refusal to change one's opinion or chosen course of action, despite attempts to persuade one to do so.

Stingy

Describing a person or behavior characterized by an unwillingness to spend money or use resources; being miserly or parsimonious.

Personal Unconscious

According to Carl Jung, the layer of the unconscious that houses material which is not within one's conscious awareness but is personal to the individual.