Ask Question
BusinessBusiness
Today, 07:31

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 ___.

+5
Answers (1)
  1. Today, 08:36
    0
    Group of answer choices:

    A) An uncertain correlation between taxes and output GDP.

    B) A strong negative relationship between taxes and output GDP.

    C) A strong positive relationship between taxes and output GDP.

    D) A weak positive relationship between taxes and output GDP.

    Answer:

    The correct answer is letter "C": A strong positive relationship between taxes and output GDP.

    Explanation:

    According to "The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks" published by Christina and David Romer in 2010 tax increases are highly contractionary causing relevant-robust effects in the overall economy, positively affecting the Gross Domestic Product (GDP) output level.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If you live in an egalitarian foraging society with a low population density that occupies temporary camps, where everyone has equal access to resources through sharing and reciprocity, where there are no permanent positions of authority, and where
Answers (1)
Suppose Nationwide increases the insurance premium they charge for their auto policies by 16 percent. In response, the demand for State Farm auto policies in a small town increases from 3 comma 500 to 4 comma 025.
Answers (1)
Su lin and angela are discussing how the veterinary technician can play an important role in preventing euthanasia of animals for behavior problems. su lin says that veterinary technicians can provide the pet owner with preventative counseling.
Answers (1)
Yesterday, Berryman Investments was selling for $90 per share. Today, the company completed a 7-for-2 stock split. If the total market value was unchanged by the split, what is the price of the stock today? (Do not include the $ sign in your answer).
Answers (1)
A spurious relationship occurs between two variables when:
Answers (1)
New Questions in Business
JLK is a partnership that was formed two years ago and has been extremely successful thus far. The owners have decided to incorporate and offer shares of stock to the general public. What is this type of an equity offering called?
Answers (1)
Tom has a life insurance policy with a $1.8 million benefit. If this money was put into an account with a 4.5% interest rate, how much income can his beneficiaries expect in case Freddy dies
Answers (1)
Assume that an individual only consumes two goods: pizza and colapizza and cola , with pizzapizza being a normal gooda normal good.
Answers (1)
Line workers at a Virginia steel mill developed a new process that made the line safer. It went through only one level of management before it was approved by the vice president of operations.
Answers (1)
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 ___.
Answers (1)
Home » Business » 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 ___.
Sign Up Forgot Password?