Supply-side economics emphasized government policies to:
a. restrict aggregate spending and boost aggregate supply
b. increase minimum wage to improve labor productivity.
c. stimulate real GDP by improving incentives to work.
d. lower interest rates to boost saving.
e. increase government tax revenues in order to increase government purchases.
c
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Falling growth rates during the 2007-2009 recession occurred:
A. only in the United States. B. in the United States and Canada, but not in Germany, the United Kingdom, or Japan. C. only in the high-tech sectors of the U.S. economy. D. in the United States, Canada, Germany, the United Kingdom, and Japan.
Estimations calculated using the rule of 70:
A. make it easier to appreciate how small differences in growth rates can add up to huge differences in income over time. B. make it easier to appreciate how big differences in growth rates are needed to create any real difference in income over time. C. are simple to use, but make it difficult to see the relationship between growth rate and income over time. D. are simple to use, but give estimates that have been proven wrong in recent decades.
If a supply curve is perfectly horizontal, what is the value of the price elasticity of supply?
Diminishing marginal returns implies that:
A. marginal product is decreasing. B. marginal product is increasing. C. marginal product is constant. D. marginal product may be increasing or decreasing.