Supply-side economics is based on the theory that:
A. budget deficits will stimulate demand, output, and employment.
B. budget deficits will lead to higher interest rates, which will weaken their expansionary impact.
C. higher tax rates will increase tax revenues.
D. increases in aggregate supply lower the price level.
Answer: D
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In the Keynesian system, an increase in the money stock would
a. increase the interest rate, which, in turn, would increase aggregate demand and income. b. decrease the interest rate, which, in turn, would decrease aggregate demand and income. c. decrease the interest rate, which, in turn, would increase aggregate demand and income. d. decrease the interest rate but would have no effect on aggregate demand and income.
A key difference between clubs and government is _____
a. government requires everyone within its jurisdiction to participate b. government acts on behalf of the poor c. government is not frivolous, like most clubs d. government requires collective action
What is the principal difference between a U-form and an M-form organization?
Which of the following is the best example of a durable good?
a. the box of Dunkin' Donuts doughnut holes that you ate for lunch yesterday b. a bottle of Calvin Klein Obsession (cologne) c. your Ford Explorer d. a box of pecan nuts e. the services you bought when you had your ears pierced last week