15. When we say that income is a flow variable, we mean that: 1.
income is measured at a given point in time 2. income is very
liquid 3. income is measured over a period of time 4. income is
another word for money
25. Which of the following statements is true? 1. Wealth
increases when C exceeds income 2. Wealth is a flow variable
3. Wealth increases when income exceeds C 4. A and B are both
true
26....
Are Social Security taxes progressive, regressive or
proportional? Is federal income tax progressive, regressive or
proportional? Why? What about the tax system as whole, is it
progressive, regressive or proportional? Why?
Explain what we mean when we say that the economy exists in an
ecological system. How can we add the natural capital in a circular
flow diagram, and why is it important? Discuss how the concept of
negative externalities and property rights are related to pollution
and resource degradation.
Question 1:
(a) What do we mean when we say money is neutral?
(b) Bill Clinton believed in working with the Fed to use
Monetary Policy to help the economy grow while he was President in
the early 1990s. That is, he believed that money had real effects
(on output and the interest rate). Show that Bill Clinton was
right, and money is non-neutral in the short run. (Guide: Draw the
IS-LM graph only).
(c) Ronald Reagan believed that Monetary...
What do we mean when we say that a histogram is skewed to the
left? To the right? What is a bimodal histogram? Discuss the
following statement: “A bimodal histogram usually results if we
draw a sample from two populations at once.” Suppose you took a
sample of weights of college football players and with this sample
you included the weights of cheerleaders. Do you think a histogram
made from the combined weights would be bimodal? Explain.
write in your...