The sticky-price theory helps explain what feature of the aggregate demand and aggregate supply model?
why the short run aggregate-supply curve slopes upward
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National debt is likely to fall when
a. there is a succession of budget deficits. b. government's expenditure falls short of its receipts. c. government's expenditures exceed its receipts. d. government expenditure equals revenue.
The misperceptions theory of the short-run aggregate supply curve says that if the price level is higher than people expected, then some firms believe that the relative price of what they produce has
a. decreased, so they increase production. b. decreased, so they decrease production. c. increased, so they increase production. d. increased, so they decrease production.
"Lower marginal tax rates encourage people to work, save, and invest, resulting in more output and a larger tax base." This statement most closely reflects which of the following schools of economic thought?
A. Keynesian B. Adam Smithian C. Marxist D. Supply-side economics
Refer to the information provided in Table 30.1 below to answer the question(s) that follow.
Table 30.1
Refer to Table 30.1. From 2015 to 2016 the real wage
A. rises. B. falls. C. stays the same. D. rises then falls.