The Reagan tax cuts of the 1980s
A. had not impact on the budget deficit.
B. decreased the budget deficit.
C. increased the budget deficit.
D. initially decreased the deficit but later increased it.
Answer: C
You might also like to view...
Allocative efficiency refers to
A) producing the goods and services most highly valued. B) using the least amount of labor to produce output. C) producing the maximum possible amount of output. D) obtaining the least output with the most inputs. E) producing at any point on the PPF.
Suppose the quantity of oranges demanded is less than the quantity supplied. Then
A) the market still clears, because consumers can buy all the oranges they wish at the prevailing market price. B) the market still clears, because producers can sell all the oranges they wish at the prevailing market price. C) the market clears, but is not fully coordinated. D) oranges are no longer scarce goods. E) none of the above is true.
The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops
A) 300,000 B) 500,000 C) 700,000 D) 0 flip-flops because the United States exports E) 400,000
Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result,
A) aggregate demand will increase by 2.5%. B) the purchasing power of wages will rise if wages increase by 2.5%. C) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease. D) the short-run aggregate supply curve will shift to the left as wages increase.