If a tax cut increases people's labor supply, then the tax cut
A) increases potential GDP.
B) decreases aggregate demand.
C) decreases potential GDP because the real wage rate falls.
D) does not affect aggregate demand.
E) Both answers B and C are correct.
A
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Unemployment insurance contributes to structural unemployment by:
A. allowing unemployed workers to search longer or less intensively for jobs. B. keeping wages above the market-clearing level. C. keeping wages below the market-clearing level. D. forcing unemployed workers to take the first job offered to them.
The above table has data from the nation of Media. Based on these data, when disposable income is $8.0 trillion, saving is
A) -$1.5 trillion. B) $1.5 trillion. C) $7.5 trillion. D) $0.5 trillion. E) -$0.5 trillion.
Which answer below CORRECTLY describes the relationship between the demand for labor curve and the value of marginal product curve?
A) The curves intersect to determine the equilibrium quantity of labor. B) The value of marginal product curve lies to the right and above the demand for labor curve. C) The curves are the same. D) The value of marginal product curve lies to the left of the demand for labor curve.
Which scenario best demonstrates how money functions as a unit of account?
a. Haley knows that a gel pen costs $1.50 and a jar candle is $9, so a candle is equal to six pens. b. Gregory gives Carlito $100 and receives a new pair of jeans in exchange. c. Miguel makes a payment on his car loan every month. d. Each quarter, Celeste deposits money into a Roth IRA to save for her retirement.