The school that argues that through tax reductions, spending cuts, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the

a. rational expectations school
b. neo-Keynesian school
c. school of supply-side economics
d. new Classical school
e. classical school


C

Economics

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When a firm faces a downward-sloping demand curve, marginal revenue

a. is constant regardless of how much output the firm produces b. is less than price c. increases as the firm produces more output d. decreases if the firm produces less output e. is equal to the price per unit of output

Economics

If the inflation rate exceeds the nominal rate of interest:

a. the real interest rate is negative. b. All of the answers are correct. c. lenders lose. d. savers lose.

Economics

Supply-side policies are focused on ______.

a. short-run stabilization b. both short and long-run stabilization c. increasing long-run industry regulation d. decreasing long-run aggregate supply

Economics

According to the crude quantity theory of money, if M rises by 8%, Q will

A. fall by 8%. B. fall by less than 8%. C. stay the same. D. Rise by less than 4%.

Economics