Which of the following ideas is the most plausible?
a. Reducing a high tax rate is less likely to increase tax revenue than is reducing a low tax rate.
b. Reducing a high tax rate is more likely to increase tax revenue than is reducing a low tax rate.
c. Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate.
d. Reducing a tax rate can never increase tax revenue.
b
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If the Fed lowers the inflation rate and initially expected inflation does not change, in the short run the unemployment rate ________, and in the long run the unemployment rate ________ the natural unemployment rate
A) does not change; is greater than B) rises; is greater than C) falls; is equal to D) rises; is equal to E) does not change; is equal to
Which economist said, "This focus on distribution makes the significance of distributional issues (transfer issues) in political life relatively greater and the significance of widespread common interest in political life relatively smaller."?
A. John Maynard Keynes B. Milton Friedman C. David Friedman D. Mancur Olson E. David Ricardo
The belief that the government can do absolutely nothing in either the short run or the long run to reduce the unemployment rate, because people will anticipate the government's actions, is held by the:
a. rational expectations school. b. neo-Keynesian school. c. classical school. d. supply-side school. e. Keynesian school.
An increase in the costs of production will cause the:
A. short-run aggregate supply curve to shift to the right. B. aggregate demand curve to shift to the right. C. short-run aggregate supply curve to shift to the left. D. long-run aggregate supply curve to shift to the left.