A tax elasticity of supply equal to 0.21 indicates that
A. Workers will cut back on the number of hours worked if tax rates increase.
B. Employers will hire more workers if tax rates increase.
C. Employers will not hire any workers if tax rates increase.
D. Workers will not cut back on the number of hours worked if tax rates increase.
Answer: A
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Time to maturity refers to the amount of time until
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In terms of the competing claims of equality and efficiency, in the United States we have
a. chosen greater wage inequality for lower unemployment. b. chosen higher unemployment for less wage inequality. c. both greater wage inequality and higher unemployment. d. not faced a trade-off between wage inequality and unemployment. e. been able to choose both less wage inequality and lower unemployment.
Within the AD/AS model, if consumers increase their savings and cut back on their spending, the
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