Which model is used to evaluate the effects of macroeconomic policy such as tax cuts?
A. Aggregate demand and aggregate supply
B. Demand and supply
C. Game theory
D. Circular flow.
A. Aggregate demand and aggregate supply
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From 1860 to 1910, U.S. mobility between social classes and occupations
(a) distracted immigrants. (b) increased the potential migrant's opportunity cost of staying in Europe. (c) attracted immigrants to the U.S. (d) decreased foreign investment in the U.S.
A person who uses a rule of thumb to determine the best rate of savings:
A. is necessarily making a mistake, since finding the best rate of savings involves complex mathematical models. B. is necessarily making a mistake, since there is no single best rate of savings. C. is not necessarily making a mistake because rules of thumb often arise out of trial and error or from observation of others' successful decisions. D. is not necessarily making a mistake because, in the long run, all rates of savings turn out to yield the same economic benefit.
As a result of a per-unit tax on output in a market: a. the quantity traded increases
b. the quantity traded does not change. c. the quantity traded decreases. d. a surplus is created at the new equilibrium price.
The line that relates the price of a good and the quantity supplied of that good is called the supply
a. schedule, and it usually slopes upward. b. schedule, and it usually slopes downward. c. curve, and it usually slopes upward. d. curve, and it usually slopes downward.