According to classical macroeconomic theory,
A. aggregate supply automatically adjusts to shifts in aggregate demand.
B. demand creates its own supply.
C. flexible prices, wages, and interest rates assure full-employment equilibrium.
D. desired investment typically exceeds desired saving.
C. flexible prices, wages, and interest rates assure full-employment equilibrium.
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Brand names and packaging are forms of product differentiation under monopolistic competition.
Answer the following statement true (T) or false (F)
The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000 . Karen paid $6,000 in taxes. What were her marginal and average tax rates?
a. 20 percent and 12 percent, respectively b. 20 percent and 15 percent, respectively c. 10 percent and 12 percent respectively d. 10 percent and 15 percent respectively
Saving $100 will:
A. increase wealth by $100 only if the $100 is used to repay a debt. B. decrease wealth by $100. C. increase wealth by $100. D. increase wealth by $100 only if the $100 is used to purchase an asset.
If the U.S. Treasury is forced to sell bills and bonds to the U.S. public to finance deficits, this may ________ the price of bonds and ________ the interest rates on the bonds.
A. drive up; drive up B. drive down; drive up C. drive down; drive down D. drive up; drive down