A supply-side economist would recommend a cut in marginal tax rates on capital gains and on investment expenditures
A. When the economy is in a recession.
B. if government spending is cut by an equal amount.
C. if it is judged that the resulting deficit will not crowd out very much investment.
D. regardless of the state of the economy or other policies.
D. regardless of the state of the economy or other policies.
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Figure 34-9
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In Figure 34-9, Pestoland at price OA
A. is importing MN pasta from Pastaland. B. is exporting MN pasta to Pastaland. C. is exporting XY pasta to Pastaland. D. is exporting OZ pasta to Pastaland.
What assumptions do economists make about the time period known as the short run?
What will be an ideal response?
Assume there is an increase in the number of consumers in the market for a good sold by perfectly competitive firms that are initially producing the profit-maximizing level of output. For the individual firm, this would result in:
A) a decrease in both price and the profit-maximizing quantity of output. B) a decrease in price and increase in the profit-maximizing quantity of output. C) an increase in both price and the profit-maximizing quantity of output. D) an increase in price and decrease in profit-maximizing quantity of output.
Who among the following is most likely to favor an appreciation of the U.S. dollar?
a. a British professor visiting New York b. an American farmer whose business depends on exports c. an American professor on a tour of Italian museums d. Disneyland in Los Angeles, California, a popular destination for foreign tourists e. a Japanese retailer whose business depends on imports from the U.S.