To convey the point about supply-side economics, economist Arthur Laffer likened taxpayers to:
A. The ancient Greeks and the government to the ancient Romans
B. Sea passengers on the Titanic and government to the icebergs
C. Western pioneers in the United States and government to railroads
D. Travelers through Sherwood Forest and the government to Robin Hood
D. Travelers through Sherwood Forest and the government to Robin Hood
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Suppose there are ten identical manufacturing firms that produce computer chips with machinery (capital, K) and labor (L), and each firm has a production function of the form q = 10KL0.5. What is the industry-level production function?
A) Q = 10K10L5 B) Q = 100KL0.5 C) Q = 100L0.5 D) none of the above
Which of the following will occur if the Fed raises the reserve requirement, ceteris paribus?
A. The aggregate supply curve should shift leftward. B. The aggregate supply curve should shift rightward. C. The aggregate demand curve should shift leftward. D. The aggregate demand curve should shift rightward.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Other things equal, a country's long-run aggregate supply will shift to the left when _____
a. the aggregate expenditure on education rises b. the productivity of labor rises c. the quantity of natural resources rises d. the mortality rate rises e. the amount of investment rises