If the government wishes to promote a higher rate of growth of real GDP, a supply-side economist would argue the appropriate policy is
A) engaging in expansionary fiscal policy by lowering marginal tax rates.
B) engaging in expansionary fiscal policy of increasing government spending.
C) lowering marginal tax rates on people and raising them on corporations.
D) leaving the economy alone and letting the natural forces bring it into a long-run equilibrium.
Answer is A) engaging in expansionary fiscal policy by lowering marginal tax rates.
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The part of the balance of payments that records purchases of assets a country has made abroad and foreign purchases of assets in the country is the
A) capital account. B) current account. C) financial account. D) statistical discrepancy account.
The U.S. lowered tariffs in the 1850s because of a budget surplus
Indicate whether the statement is true or false
The supply of leather jackets would be expected to increase as a result of:
A. the expectation that the price of leather jackets will rise in the future. B. an increase in the popularity of leather jackets. C. an increase in the price of leather jackets. D. a decrease in the cost of producing leather jackets.
Which of the following assumptions is(are) NOT made in consumer behavior theory?
A. Consumers have complete information. B. Consumers can rank all bundles of goods. C. Consumers can measure the utility they get from all bundles of goods. D. both a and b E. None of the above are assumptions made in consumer behavior theory.