"Any tax cut to increase demand for output should favor lower-income people" is a ________ statement about ________ policy.
A. normative; fiscal
B. positive; monetary
C. normative; monetary
D. positive; fiscal
Answer: A
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"The decision to employ an additional unit of labor depends on whether the value of marginal product is greater than or smaller than the wage rate." Is the previous statement correct or incorrect?
What will be an ideal response?
Which of the following instruments are traded in a capital market?
A) corporate bonds B) U.S. Treasury bills C) negotiable bank CDs D) repurchase agreements
According to Keynesians, the primary reason money is not neutral is
A) rational expectations. B) price stickiness. C) reverse causation. D) misperceptions over the aggregate price level.
Mary increases her consumption of Good X after the price of Good Y decreased. For Mary
A) Good X and Good Y are substitutes. B) Good X and Good Y are complements. C) Good X is an inferior good. D) Good Y is an inferior good.