What curve shows the quantity of goods and services that firms choose to produce and sell at each price level?
The aggregate supply curve
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Consider a tax cut which affects not only consumer disposable income, but also after-tax earnings from labor supplied to labor markets and from financial assets acquired through saving. In the long run we would expect this tax cut to
A) increase both the price level and the level of real GDP. B) decrease both the price level and increase real GDP. C) increase the price level. D) increase the level of real GDP.
Supply-side economists argue cuts in tax rates
A) always reduce tax revenues. B) may increase tax revenues. C) always increase budget deficits. D) have no effect on tax revenues.
An excise tariff imposed on foreign competitors will:
A. increase domestic firms' profits at all levels of demand. B. increase domestic firms' profits only when demand is high. C. have no impact on domestic firms' profits when demand for domestic goods is high. D. increase domestic firms' profits only when demand is low.
Which of the following statements is true?
A) A worker who shirks work is not an economic agent. B) All economic agents are necessarily individuals. C) A government is an example of an economic agent. D) A street gang is not an economic agent.