Supply-side economists
a. focus almost exclusively on the supply-side effects of changes in the money supply.
b. did not devote much attention to the supply-side effects of changes in income tax rates since the marginal income tax rate is very low and pertained only to the relatively wealthy.
c. argued that cuts in marginal tax rates had very favorable supply-side effects.
d. argue that government spending is at least as important as tax rates.
C
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A cash item in the process of collection is
A) a U.S. Treasury bill that has matured, but for which the bank has not yet received payment. B) a car loan payment that is due but not yet received by the bank. C) a check drawn against another bank, from whom the funds have not yet been collected. D) currency that has been deposited in the bank, but not yet formally counted and entered into the bank's balance sheet.
The price of a firm's product is $8 and the firm faces a constant marginal cost of $5 that is equal to its (constant) average total cost. If the firm does not sell a unit of its product on the day it was produced, it is sold in a secondary market for a price of $2. If the firm does not sell a unit of its product on the day it was produced, there is a ________ of ________ per unit not sold.
A) loss; $3 B) profit; $3 C) profit; $5 D) loss; $2
The higher the transaction cost of an exchange, the lower the probability of the exchange taking place between the buyer and the seller
Indicate whether the statement is true or false
Which field of economics studies how the number of firms affects the prices in a market and the efficiency of market outcomes?
a. macroeconomics b. industrial organization c. labor economics d. monetary economics