According to supply-side economists, lowering corporate income taxes:
A. results in wage hikes for employees but no economic growth.
B. moves society toward greater income equality.
C. checks the expansion of real GDP and employment.
D. stimulates investment and economic growth.
Answer: D
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The value of imports and exports is recorded in
A) official settlements account. B) current account. C) international trade account. D) capital and financial account. E) official reserves account.
Almost every time that there has been an inverted yield curve, what took place within one year?
A) recession B) rising inflation C) financial crisis D) higher bond yields
Suppose a consumer only consumes goods x and y, and suppose that x is a normal good while y is an inferior good. Which of the following is might be true?
A. The cross-price elasticity of demand for x is positive. B. The cross-price elasticity of demand for x is negative. C. The own-price elasticity of demand for y is positive. D. The own-price elasticity of demand for y is negative. E. Both (a) and (c). F. Both (b) and (d). G. All of the above. H. None of the above.
Refer to Figure 3-1. An increase in the price of the product would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.