Both Keynesians and real business cycle proponents believe that tax cuts increase output
a. and both agree it does this through increasing aggregate demand.
b. but Keynesians believe it does this through increasing aggregate demand and not aggregate supply.
c. but Keynesians believe it does this through increasing aggregate supply and not aggregate demand.
d. and both agree it does this through increasing aggregate supply.
B
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Which of the following is one source of disagreement between economists?
A. Some facts about the economy are unknown. B. Economists differ in their political persuasions. C. Economic theory may not always give an unambiguous answer to a question. D. Solving one problem may make another problem worse. E. All of these responses are correct.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.
Exports of U.S. rice to Japan tend to
A. help Japanese consumers and harm Japanese rice producers. B. help U.S. consumers and harm U.S. rice producers. C. help U.S. consumers and harm Japanese rice producers. D. harm U.S. consumers and help Japanese rice producers.
In the Cournot model, the final level of output falls between the output that would prevail if the market were ________ and the output that would be set by a ________.
A. monopolistic; cartel B. monopolistically competitive; cartel C. competitive; monopoly D. oligopolistic; monopoly