Supply-side economics stress that:
a. aggregate demand is the major determinant of real output and aggregate employment
b. tax rates are not a major determinant of real output and aggregate employment.
c. an increase in government expenditures financed by higher tax rates will cause RGDP to rise.
d. marginal tax rate changes can exert a significant impact on RGDP, even in the long run.
d
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In the figure above, when the market is in equilibrium, what is the total surplus?
A) $1,000 B) $800 C) $200 D) $1,600
Behavioral economists use which technique to test economic theory?
A) controlled experiments B) price theory C) environmental economics D) lie detector tests
If the dollar depreciates relative to other currencies, which of the following is true?
a. It takes more foreign currency to buy a dollar. b. It takes more dollars to buy a foreign currency. c. U.S. exports will decrease. d. Foreign purchases of U.S. goods will decrease.
In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.05). When ? = 0.03 and ?e = 0.06, the unemployment rate is
A. 0.04. B. 0.05. C. 0.06. D. 0.07.