Question

The "flat tax" designed by Robert Hall and Alvin Rabushka feature a flat tax for corporations...

The "flat tax" designed by Robert Hall and Alvin Rabushka feature

a flat tax for corporations that is higher than the flat tax for individuals.

a single flat tax levied only on those individuals who earn more than $500,000 a year.

a flat tax for corporations that is lower than the flat tax for individuals.

a single flat tax for corporations and for individuals.

Replacing the personal income tax with a consumption tax would

be the same as imposing a "flat tax."

be more favorable to corporations than to households.

require higher tax rates in order to keep government revenues unchanged.

allow for lower tax rates for everyone.

Suppose that the natural rate of unemployment is 5% and the current inflation rate is 1% per year. To bring the inflation rate down to zero, the actual unemployment rate in the economy would have to be______

One way to prove the Ricardian equivalence is true is to show that when the government deficit increases, (the) ________ also increase(s).

private sector saving

money supply

country's imports

consumption expenditures

Which of the following statements concerning policies to reduce inflation is FALSE?

The costs are likely to exceed the benefits.

They are likely to be more credible if the government also makes an attempt to reduce the budget deficit.

They are likely to have a lower cost if people think that the central bank is credible.

They have permanent benefits.
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Answer #1

The flat tax designed by Robert Hall and Alvin Rabushka feature a flat tax for corporation that is lower than the flat tax for individuals.

Replacing for the personal income tax with a consumption tax would require higher tax rates in order to keep government revenue unchanged.

Suppose that the natural rate of unemployment is 5% and the current inflation rate is 1% per year. To bring the inflation rate down to zero, the actual unemployment rate in thr economy would have to be lower.

One way to prove the ricardian equivalence is true is to show that when the government deficit increases the private sector will also increase.

They have permanent benefits

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