According to supply-side economists,
A. high tax rates discourage productive market exchanges because it pays for you to work less at your regular job and more at household tasks.
B. high marginal tax rates encourage additional work to make up for the lost income due to the high taxes.
C. people are rarely confronted with work-leisure decisions.
D. when operating at the upper portion of the Laffer curve, tax cuts result in tax revenue decreases.
A. high tax rates discourage productive market exchanges because it pays for you to work less at your regular job and more at household tasks.
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Explain what will happen to the equilibrium price and quantity of hybrid automobiles if there are technological advancements in the production of hybrid automobiles while at the same time consumer preference for hybrid automobiles increases
What will be an ideal response?
Suppose your neighbor owns a restaurant and boasts that he is able to turn a handsome accounting profit because of his low labor costs. He attributes this to the fact that he uses his sons and daughters as cooks and waiters
His point is that he offers them below-market wages. How would you respond to your neighbor's statement? What would you tell him to expect as his children continue to work for him while they are in college and beyond?
During a period of expansionary monetary policy
A) the price level is increased, which leads to an increase in the money supply. B) the price level is decreased, which leads to a decrease in the money supply. C) the rate of growth of the money supply is increased, leading to an increase in the price level. D) the rate of growth of the money supply is reduced, leading to a decrease in the price level.
According to the Keynesian school of thought, the economy is not self-regulating. That is, to achieve a satisfactory level of real GDP, the government often has to intervene by managing aggregate demand
a. True b. False Indicate whether the statement is true or false