One of the objections to the supply-side economics is that it tends to ignore the effects of tax cuts on aggregate demand.
Answer the following statement true (T) or false (F)
True
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A carbon tax would _____ the cost of producing goods and services that create large carbon emissions, and would lead Americans to use ______ carbon- intensive goods and services, which could _______ climate change?
A) raise; more; slow B) raise; fewer; speed up C) lower; fewer; slow D) raise; fewer; slow E) raise; more; speed up
What is meant by comparative statics? Explain with an example
What will be an ideal response?
C = $5 million + 0.9(1 - 0.1)Y I = $7 million G = $6 million NX = $1 million Based on the above data, the value of the expenditure multiplier is
A) 1.23. B) 5.26. C) 9.09. D) 11.11.
Which of the following is true? a. Economic reasoning implies that individuals will acquire all possible information about a choice before making it. b. It is not rational for people to make decisions that could turn out to be mistaken
c. Reducing information costs to consumers and suppliers could permit more intelligent market decisions and lead to greater satisfaction. d. Occupational licensing laws generally act to protect misinformed consumers from getting shoddy services and enhances competition, leading to lower prices.