The Proponents of Adaptive Expectations Believe That

question 59

Multiple Choice

The proponents of adaptive expectations believe that

• A) there will be a substantial time lag before people anticipate the effects of a shift to a more expansionary macro-policy.
• B) macro-policies that stimulate demand and place upward pressure on the general level of prices will temporarily increase output and employment.
• C) discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy.
• D) all of the above are true.

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The total amount of tax that an individual, corporation, or other entity is legally obligated to pay to a taxing authority.

Single Person

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Full-Time Student

A status for individuals enrolled in a higher educational institution with a full course load, impacting tax credits and dependency status for taxes.

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A deduction allowed by the IRS for the taxpayer, the spouse, and eligible dependents, significantly reduced and effectively eliminated with the Tax Cuts and Jobs Act for tax years 2018 through 2025.