What is the premise behind supply-side economics, and what are the economic outcomes?
What will be an ideal response?
Supply-side economics focuses on increasing the willingness and ability to supply goods and services. The goal is to shift the aggregate supply curve to the right. The outcomes are a decrease in the price level and an increase in output at the same time.
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If a stock's dividend is expected to grow at a constant rate of 6 percent in the future
and it has just paid a dividend of $2.50 a share, and you have an alternative investment of equal risk that will earn a 8 percent rate of return, what would you be willing to pay per share for this stock? A) $2.86 B) $33.13 C) $132.50 D) $200.00
If the intersection of the IS curve with the horizontal axis comes at a level of output below the natural level of output, the Fed
A) can easily bring the economy back to the full-employment level of output. B) loses control of the economy. C) must use contractionary model policy to correct economic problem. D) must decrease money supply and ignore interest rates.
When buying a piece of equipment, it is always best for the firm to pay cash instead of borrowing the funds since this renders the equipment less costly
Indicate whether the statement is true or false
Juan is going to spend all of his income. For the last unit of Good X consumed Juan gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $4. The price of Good Y is $2. If Juan wants to maximize his utility he should
A. continue to purchase the same amount of Good X and Good Y. B. increase the consumption of Good X and decrease the consumption of Good Y. C. decrease the consumption of Good X and increase the consumption of Good Y. D. decrease the consumption of Good X and decrease the consumption of Good Y.