A decrease in marginal tax rates will cause entrepreneurship to ________ and AS to shift to the ________.
A. decrease; right
B. increase; left
C. decrease; left
D. increase; right
Answer: D
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If the federal funds rate ________.
A. decreases, the prime rate will not change B. increases, the prime rate will decrease C. increases, the prime rate will increase D. decreases, the prime rate will increase
Which of the following will be included in the calculation of gross domestic product using the expenditure method?
A) Wages paid to labor by firms B) Interest paid by households for loans C) Services purchased by the government D) Dividends paid by firms to shareholders
(Last Word) In response to the Great Recession, Congress extended the maximum period for drawing unemployment benefits from 26 to 99 weeks. While this was done to help workers financially and to help the economy by stimulating demand, it had what
unintended consequence? A. It significantly increased the rate of inflation. B. It drove the unemployment rate lower than the lowest prerecession rate. C. It encouraged millions of unemployed workers to return to school, driving up projected future rates of labor productivity. D. It prompted inefficiently long searches that kept the unemployment rate higher.
If actual experience supports two competing theories, then both theories are proven to be true
Indicate whether the statement is true or false