Supply-side economics is based on the idea that reducing taxes has the effect of benefiting society as a whole.
a. true
b. false
True
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How is a firm's labor demand curve affected when the price of its product rises?
What will be an ideal response?
If workers and firms ignore inflation or form their inflation expectations adaptively, expansionary monetary policy will lower unemployment permanently
Indicate whether the statement is true or false
That part of national income not spent on consumption is defined as
a. transitory income b. permanent income c. disposable income d. autonomous consumption e. saving
The marginal propensity to consume is
a. the change in income divided by the change in consumption b. consumption spending divided by income c. income divided by consumption spending d. the change in consumption divided by the change in income e. the change in consumption divided by income