Give an example of a tax system where the marginal tax rate would equal the average tax rate
The marginal tax rate would equal the average tax rate if the tax system had one rate, such as everyone pays 10% of income in taxes, regardless of total income and without any deductions or exclusions. In other words, the tax must begin with the first dollar earned.
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If the aggregate supply curve is steep,
A. increased aggregate demand will not lead to higher prices. B. greater demand for labor will not cause significant wage increases. C. business firms are probably producing near capacity. D. All of these responses are correct.
Which of the following is an example of an activity that generates positive externalities
a. driving a car b. producing clothing c. washing your car d. education e. building a bridge
If people behave as the rational expectations school thinks they do, one result is that adjustments in real output to monetary and fiscal policy changes are
A. smaller. B. larger. C. less predictable. D. in the opposite direction from that predicted by standard analysis.
(Last Word) In The General Theory of Employment, Interest, and Money:
A. Adam Smith stated his idea of the invisible hand. B. Thorstein Veblen poked fun at the leisure class. C. John Maynard Keynes attacked the classical economist's contention that recession or depression will automatically cure itself. D. J. B. Say developed "Say's law."