Tax cuts associated with supply-side economics often lead to increased
A. federal budget surpluses.
B. federal budget deficits.
C. foreign trade surpluses.
D. government spending.
Answer: B
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Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. For Lee, seeing a documentary is a dominant strategy. B. Lee's dominant strategy depends on Jordan's choice. C. For Lee, seeing a comedy is a dominant strategy. D. Lee does not have a dominant strategy.
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 5,000; 5,000 B. 6,000; 4,000 C. 6,500; 4,500 D. 6,500; 3,000
What's the Easterlin Paradox -- and in what sense does it suggest reference-dependent preferences?
What will be an ideal response?
Potential GDP increased from 4.7 trillion to 16.6 trillion between 1970 and 2013 resulting in economic growth. Also, during this time ________ occurred because ________
A) inflation; aggregate demand decreased by more than potential GDP B) stagflation; aggregate demand increased by more than potential GDP C) deflation; aggregate demand increased by more than potential GDP D) inflation; aggregate demand increased by more than potential GDP E) inflation; aggregate demand increased by less than potential GDP