The notion that a decline in tax rates and other incentives will spur individuals and firms to increase productivity is typically referred to as
A) demand-side economics.
B) Ricardian equivalence.
C) supply-side economics.
D) Keynesian economics.
Ans: C) supply-side economics.
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A municipal bond is
a. issued by the federal government. b. issued by state and local governments. c. issued by corporations. d. issued by households.
Wages set above the equilibrium wage by
a. firms to increase morale are called collective bargaining wages. b. lawmakers to decrease cyclical unemployment are called minimum wages laws. c. firms to increase productivity are called efficiency wages. d. lawmakers to decrease the length of a job search are called efficiency wages.
If the marginal propensity to consume, MPC, is less than 1 and a household's disposable income increases by $2,000, the household's consumption will
What will be an ideal response?
Which of the following is a major drawback of the European Monetary Union?
A. Its inability to use monetary policies to address a recession that affects some member countries but not others B. Its inability to agree to a target for the euro area inflation rate C. Its inability to raise efficiency in production, thus lowering aggregate output of the member nations D. Its inability to bring down the transaction costs of trade between member nations