The Policy Ineffectiveness Proposition of the New Classical Model Suggests

question 20

Multiple Choice

The policy ineffectiveness proposition of the new classical model suggests that ________.

• A)unanticipated policy has no effect on the business cycle
• B)anticipated policy can have an effect on the business cycle
• C)anticipated policy has no effect on the business cycle
• D)legislative policy initiatives have little effect if the executive branch of government is in the hands of another political party

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Definitions:

Payroll of Scotland Company

The total amount of wages and salaries paid by Scotland Company to its employees.

Total Payroll Tax

The combined amount of all governmental taxes that an employer is required to withhold and/or pay on behalf of their employees, including federal, state, and local taxes.

Social Security Taxes

Taxes levied on both employers and employees to fund the Social Security program, used for providing retirement, disability, and survivor benefits.

Medicare Taxes

Taxes withheld from employees' paychecks and matched by employers to fund the Medicare program.