The price of leisure is the
A. wage rate.
B. interest rate.
C. discount rate.
D. rate of return on investment.
Answer: A
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Which of the following is a way to tax leisure?
a. Tax complements to leisure. b. Subsidize substitutes to leisure. c. Increase income taxes. d. Tax unearned income.
The short-run effects of government's financial rescue program and fiscal stimulus package helped the economy increase aggregate demand curing the Great Recession
a. True b. False Indicate whether the statement is true or false
The interest-rate-based monetary policy transmission mechanism argues that an increase in the money supply
A. causes interest rates to fall, which causes an increase in planned investment, and an increase in aggregate demand. B. has no effect on aggregate demand but increases short-run aggregate supply. C. has no effect on aggregate demand but reduces long-run aggregate supply. D. causes the inflation rate to decline, which causes an increase in household consumption spending and an increase in aggregate demand.
If macaroni and cheese is an inferior good, falling incomes will tend to:
A. lower its price but raise its quantity. B. put upward pressure on its price and quantity. C. put downward pressure on its price and quantity. D. raise its price but lower its quantity.