If the government cuts the tax rate, workers get to keep
a. less of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
b. less of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.
c. more of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
d. more of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.
c
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Which of the following will create the largest increase in the money supply?
A. the Federal Reserve sells bonds and the banks choose to hold more excess reserves B. the Federal Reserve buys bonds and the banks choose to hold less excess reserves C. the Federal Reserve buys bonds and the banks choose to hold more excess reserves D. the Federal Reserve sells bonds and the banks choose to hold less excess reserves
Explain why a production quota is inefficient
What will be an ideal response?
Firms choose to price discriminate
a. To earn higher profits b. To sell goods to consumers who otherwise would not have purchased c. Both a and b d. None of the above
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.