The Reagan administration's 1981 personal income tax changes were designed to:
a. stimulate aggregate demand and reduce unemployment
b. stimulate aggregate demand and increase economic growth.
c. stimulate aggregate supply and increase economic growth.
d. decrease aggregate demand in order to reduce inflation.
e. increase tax revenues to reduce the federal budget deficit.
c
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A commodity or service whose consumption by one person does not preclude others from also consuming it is called a
A) private good. B) public good. C) Giffen Good. D) Coase Good.
The level of Real GDP and the price level always have a direct relationship
Indicate whether the statement is true or false
Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.Table 19.3Michael's Utility ScheduleUnits of ColaTU of ColaMU of ColaUnits of PretzelsTU of PretzelsMU of Pretzels14040130302 322 2039624366164112 478 5124 584 Refer to Table 19.3. Suppose Michael has $28 to spend on cola and pretzels. What combination should he purchase in order to maximize his utility?
A. Two colas and three pretzels. B. One cola and five pretzels. C. Three colas and one pretzel. D. Three colas and four pretzels.
Assume that an additional $50,000 in benefits will be received each year if a town hires an additional police officer whose only job would be to catch drivers who drive over the speed limit on its only street. What must the additional cost of this
additional police officer be to make this hiring economically rational? What will be an ideal response?