Which of the following statements is correct? Classical economists
a. believe demand as well as supply determines aggregate output.
b. believed in an active role for government in managing the economy through tax policy.
c. gave little explicit attention to factors that determined the overall demand for commodities.
d. were worried about depressions that could come about because of too little government consumption.
C
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If Mike earns $80,000 this year and pays $16,000 in taxes and David earns $50,000 this year and pays $11,000 in taxes, this tax system would appear to be a. progressive
b. proportional. c. regressive. d. none of the above
If a firm finds that increases in output lead to increases in long-run average total cost, then it must be experiencing _________ which could be caused by ___________
Fill in the blank(s) with the appropriate word(s).
When the interest rate is below the equilibrium level,
a. the quantity of money that the Federal Reserve has supplied exceeds the quantity of money that people want to hold. b. people respond by selling interest-bearing bonds or by withdrawing money from interest-bearing bank accounts. c. bond issuers and banks respond by lowering the interest rates they offer. d. All of the above are correct.
If the government of a country does not intervene in the foreign exchange market, then the country is said to have a:
A) flexible exchange rate system. B) managed exchange rate system. C) nominal exchange rate system. D) fixed exchange rate system.