A proponent of supply-side economics would advocate
a. increasing income taxes on saving.
b. reducing corporate income tax.
c. increasing capital gains tax.
d. increasing personal income tax.
b
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A person is betting a coin will come up heads or tails. The coin always lands on one of these two outcomes. This person can bet to
A) eliminate only the systematic risk. B) eliminate only the random risk. C) eliminate all risk. D) All of the above.
The long-run aggregate supply curve is vertical at $10 trillion, but the short-run aggregate supply curve intersects the aggregate demand curve at $12 trillion. From this, we know that
A) the economy is operating below full capacity in the short run, and will have to adjust by hiring more workers, thus reducing unemployment. B) the price level is too high. The only way long-run equilibrium can be restored is to lower the price level. C) adjustments will have to occur so that the long-run aggregate supply equals $12 trillion. D) adjustments will have to occur so that the short-run aggregate supply intersects the aggregate demand curve at $10 trillion.
The more time people have to adjust to a price change:
A. the less elastic their demand will be. B. will not affect the elasticity of their response unless it is a luxury good. C. the more elastic their demand will be. D. will not affect the elasticity of their response unless the good is a necessity.
GDP is geographically focused, including all output produced within a nation's borders.
Answer the following statement true (T) or false (F)