The idea that a tax cut will create an incentive for people to increase their quantity of labor supplied, which will shift aggregate supply to the right and that will lower the price level and increase real GDP, is held by the
a. rational expectations school
b. school of supply-side economics
c. neo-Keynesian school
d. classical school
e. Keynesian school
B
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When gross investment is greater than depreciation, then the nation's capital stock increased
Indicate whether the statement is true or false
According to the kinked demand curve model, regardless of whether a firm increases or decreases price, its total revenues will decrease as a result of the price change
Indicate whether the statement is true or false
In 1995 in the United States, consumption expenditure was $5,152 billion, investment was $1,164 billion, government purchases of goods and services were $1,407 billion, and total exports were $855 billion. GDP equaled
What will be an ideal response?
Technological progress shifts the production possibility curve away from the origin.
Answer the following statement true (T) or false (F)