The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the:
a. rational expectations school.
b. neo-Keynesian school.
c. supply-side school.
d. new classical school.
e. classical school.
c
You might also like to view...
Using the above table, the marginal utility for the sixth glass of water is
a. -1 utils b. -3 utils c. -5 utils d. -7 utils e. none of the above
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
The federal government budget has generally been in a deficit for the past several decades because
A) budget deficits promote full employment. B) every year during those decades was a recession year in which expansionary fiscal policy was called for. C) military expenditures were increased steadily throughout those decades. D) political pressure on Congress to increase taxes and to balance the budget were less effective than political pressure to increase expenditures.
A negative externality is
A. a type of tax. B. a type of subsidy. C. a type of money price. D. linked to external costs. E. linked to external benefits.