Which of the following is emphasized by supply-side economics?
A. the effect of budget deficits on interest rates and aggregate demand
B. the effect of government spending on aggregate demand, output, and employment
C. the effect of marginal tax rates on aggregate supply
D. the effect of budget deficits on the rate of taxation in the future
Answer: C
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If the 4 largest cereal companies' total sales are $19 billion and the industry's total sales are $55 billion then according to the Four-Firm Concentration Ratio the industry is
A. an oligopoly. B. a monopoly. C. perfectly competitive. D. monopolistically competitive.
Suppose the economy is at point 1 in Figure 13.1. With output below potential output, it might not be possible to create any expectation of an increase in inflation
How, then, might output be brought back to potential? What would this look like on the graph?
The required reserve ratio is the percentage of total deposits that the Fed requires a bank to hold in vault cash or on deposit with the Fed
a. True b. False Indicate whether the statement is true or false
If the world price of a good is equal to its no-trade equilibrium price, the country will import more of the good from other nations
a. True b. False Indicate whether the statement is true or false