Which of the following correctly describes the effects of a decrease in net taxes?
What will be an ideal response?
Disposable income increases, consumption increases, and saving increases.
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The period of expansion ends with a ________ and the period of recession ends with a ________
A) business cycle peak; business cycle peak B) business cycle trough; business cycle trough C) business cycle peak; business cycle trough D) business cycle trough; business cycle peak
Compared to most other industrialized nations, the United States has greater income inequality.
Answer the following statement true (T) or false (F)
Macroeconomic topics do not usually include:
A. the profit maximizing decisions of an individual manufacturer. B. the rate of inflation. C. the rate of unemployment. D. economic growth.
The original Phillips curve implied or assumed that
A) the markup over labor costs was zero. B) the expected rate of inflation would be zero. C) the actual and expected rates of inflation would always be equal. D) all of the above E) none of the above