Supply-side theory suggests that
A. increased labor productivity may not increase real output.
B. increased government spending does not increase aggregate demand.
C. higher tax rates may not increase overall tax revenues.
D. aggregate supply does not depend on labor productivity.
Answer: C
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The exchange rate between the United States and Japan
A) is fixed so it does not change. B) consistently decreases over time. C) does not exist. D) consistently increases over time. E) fluctuates, sometimes rising and sometimes falling.
A firm uses labor and capital. To tell if the firm is technologically efficient, you
A) do not need to know the cost of labor or the cost of capital. B) need to know the cost of capital but not the cost of labor. C) need to know the cost of labor and the cost of capital. D) need to know the cost of labor but not the cost of capital.
What are the four main ways in which the CPI is an upward-biased measure of the price level?
What will be an ideal response?
The total cost curve for a firm can be derived from isoquants and isocost lines by
A. varying production technologies, but keeping input prices and expenditure levels constant. B. varying total expenditures while keeping input prices and production technology constant. C. varying the price of either capital or labor while keeping total expenditures and production technology constant. D. varying the prices of capital and labor and keeping total expenditure constant.