If the demand-side effects of supply-side tax cuts are greater than the supply-side effects, then we can expect the result to be a(n)
A. decrease in output and prices.
B. decrease in output and an increase in prices.
C. increase in output and prices.
D. increase in output and a decrease in prices.
Answer: C
You might also like to view...
A rightward shift in the demand curve in the loanable funds market causes a ________ the demand curve in the investment demand market.
A. leftward shift in B. downward movement along C. rightward shift in D. upward movement along
The predominant form of household debt is
A) consumer installment debt. B) collateralized debt. C) unsecured debt. D) unrestricted debt.
Given the production function q = 4LK, what is the marginal product of labor when capital is fixed at 25?
A) 4K B) 100 C) 100K D) 100L
The best example of a capital good would be ___.
A. the generator in a power plant that makes electricity B. a new lawn mower owned by Mr. Goffe C. aluminum that is transformed into an airplane D. funds that a company borrows from a bank