Redistribution programs create a disincentive to work among
A) taxpayers only.
B) benefit recipients only.
C) both taxpayers and benefit recipients.
D) neither taxpayers nor benefit recipients.
C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
If the economy is experiencing an inflationary gap, Keynesian economists advocate allowing flexible wages to shift the short-run aggregate supply curve (SRAC) upward and restore full employment
a. True b. False Indicate whether the statement is true or false
Dynaflex Corp. is considering an investment project that costs $900 today. It expects the project will yield income of $350 at the end of years 1, 2, and 3. If the interest rate is 10%, the firm
A. is just indifferent between undertaking the investment and not. B. should forgo the investment. C. should undertake the investment. D. indeterminate from the given information
From 1978 to 2003, China grew on average ________ percent per year, a rate faster than any other country in the world.
A. 4 B. 9 C. 25 D. 75