Diana bought a parcel of land for $50000 in 1980 when the price index was 180. She sold it for $200000 in 2020 when the
Posted: Mon May 02, 2022 8:03 am
Diana bought a parcel of land for $50000 in 1980 when the price
index was 180. She sold it for $200000 in 2020 when the price index
was 500. If she must pay 15 percent of any capital gain in taxes,
what in her after-tax real capital gain in 2020 dollars?
a) $61111
b) $22000
c) $11200
d) $38611
Suppose a closed economy is in long-run equilibrium.
Technological change shifts the long-run aggregate-supply curve $80
billion to the right. At the same time, government purchases
increase by $40 billion. If the MPC equals 0.8 and the crowding-out
effect is $70 billion, what would we expect to happen in the
long-run to real GDP and the price level?
a) Real GDP would be higher but the price level would be the
same.
b) Both real GDP and the price level would be lower
c) Both real GDP and the price level would be higher
d) Real GDP would be higher but the price level would be lower
index was 180. She sold it for $200000 in 2020 when the price index
was 500. If she must pay 15 percent of any capital gain in taxes,
what in her after-tax real capital gain in 2020 dollars?
a) $61111
b) $22000
c) $11200
d) $38611
Suppose a closed economy is in long-run equilibrium.
Technological change shifts the long-run aggregate-supply curve $80
billion to the right. At the same time, government purchases
increase by $40 billion. If the MPC equals 0.8 and the crowding-out
effect is $70 billion, what would we expect to happen in the
long-run to real GDP and the price level?
a) Real GDP would be higher but the price level would be the
same.
b) Both real GDP and the price level would be lower
c) Both real GDP and the price level would be higher
d) Real GDP would be higher but the price level would be lower