Some economists believe that higher marginal income tax rates __________ the incentive to work and thus shift the __________
A) increase; AD curve to the right
B) increase; SRAS curve to the right
C) increase; SRAS curve to the left
D) decrease; AD curve to the left
E) decrease; SRAS curve to the left
E
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
While the endowment bundle must lie on the original budget line, it need not lie on the budget line when prices change.
Answer the following statement true (T) or false (F)
If the economy is characterized by a certain and stable LM curve, then ________ target produces ________ fluctuations in aggregate output
A) an interest rate; smaller B) a money supply; smaller C) a money supply; larger D) an exchange rate; larger
As long as the debt is internally held, there are no problems associated with the government going into debt
Indicate whether the statement is true or false