Economists who believe the supply-side effects of tax cuts are small essentially believe that
A) tax cuts mainly affect aggregate demand.
B) tax cuts mainly affect aggregate supply.
C) tax cuts will increase the quantity of labor supplied.
D) tax cuts will result in relatively small changes in the price level.
Answer: A
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Other things held constant, higher saving rates lead to
A) increases in the number of hours workers work. B) decreases in real per capita GDP. C) a lower standard of living. D) higher living standards.
The market where currencies may be bought and sold for immediate delivery is known as
A) the forward exchange market. B) the spot exchange market. C) the purchasing power market. D) the futuristic exchange market.
For a previously-illegal good, decriminalization will cause
A. supply to become less elastic. B. demand to increase. C. demand to become less elastic. D. price to rise, unambiguously.
The notion that the value of money is determined by the overall quantity of money in existence is known as the:
A. money quantity theory. B. quantity theory of money. C. price level theory. D. level theory of prices.