If personal income taxes and business taxes decrease, then this will:
A. increase aggregate demand and aggregate supply.
B. decrease aggregate demand and aggregate supply.
C. increase aggregate demand and decrease aggregate supply.
D. decrease aggregate demand and increase aggregate supply.
Answer: A
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Refer to Exhibit 9-7. Which point is representative of the economy experiencing labor market surpluses?
The short-run aggregate supply curve is upward sloping because
A) a lower price level creates a wealth effect. B) lower taxes motivate people to work more. C) money wage rates do not immediately change when the price level changes. D) most business firms operate with long-term contracts for output but not labor.
A country is said to be in balance of payments equilibrium, when the sum of its current and its
A) non-reserved capital accounts equals zero. B) reserved capital accounts equals zero. C) non-reserved capital accounts equals to the surplus in the capital account. D) non-reserved capital accounts equals to the deficit in the capital account. E) non-reserved capital accounts is higher than the total capital account balance.
Some economists claim that the Chilean experience during the 1990s was much more successful than its Latin American neighbors. Evaluate the Chilean policies during that decade
What will be an ideal response?