A good way to start every Three-Sector-Model analysis is to:
a. Describe what is happening in the foreign exchange market and then proceed to explain what happens in the other two markets simultaneously.
b. Identify the economic effects that result from an economic change and then work your way backward to identify the most important part of the analysis, which is the economic shock that started it all.
c. Analyze the chain reaction of economic interactions.
d. Gather basic information about the three markets and describe qualitatively the economic setting in each market.
.D
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Supply-side economists argue that decreasing marginal tax rates
A) increases productivity and shifts the AS curve to the right. B) increases productivity and shifts the AS curve to the left. C) increases productivity and shifts the AD curve to the left. D) due to the Ricardian equivalence, has no impact on the economy.
In recent years, redistribution has been the fastest growing category of federal government outlays
a. True b. False
At the natural rate of unemployment, the long-run Phillips curve has a(n)
a. vertical slope. b. horizontal slope. c. upward slope. d. downward slope.
French fries and hamburgers are complements. Suppose the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then the equilibrium relative price of french fries ________ and the equilibrium quantity ________.
Fill in the blank(s) with the appropriate word(s).