A Keynesian economist would expect a supply-side tax cut to shift
A. only the aggregate supply curve outward.
B. only the aggregate demand curve outward.
C. both the aggregate demand and aggregate supply curves outward.
D. the aggregate supply curve outward and the aggregate demand curve inward.
Answer: B
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What will be an ideal response?
Taco Bell firm raises the price of its tacos. The price elasticity of demand for Taco Bell tacos equals 5.0. What happens to the Taco Bell's total revenue?
A) nothing B) It increases. C) It decreases. D) It becomes negative. E) It might change, but more information is needed to determine if it increases, decreases, or does not change.
Refer to the above figure. Which diagram shows the effect on the market of Corn Flakes when the demand for Corn Flakes has increased?
A) graph C B) graph D C) neither graph D) both graphs
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