Use the Aggregate Supply - Aggregate Demand model to determine which of the following will lead to higher aggregate output.
A. A tax increase
B. A spike in world oil prices
C. A cut in interest rates
D. A cut in government spending
Answer: C
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Economists should consider ________ when evaluating options
A) only explicit costs and benefits B) only implicit costs and benefits C) both explicit and implicit costs and benefits D) neither explicit nor implicit costs and benefits
In what way is the Social Security payroll tax regressive?
What will be an ideal response?
The increase in the quantity of labor supplied in response to a higher wage is called the:
A. income effect. B. substitution effect. C. price effect. D. labor effect.
Real GDP per person in Canada was $7,377 in 1950. Over the next 48 years it grew at a compound annual rate of 2.0 percent. If instead real GDP per person had grown at an average compound annual rate 2.5 percent, then real GDP per capita in Canada in 1998 would have been approximately ________ larger.
A. $1,770 B. $5,049 C. $24,130 D. $9,370