Using the labor market, the production function Real GDP = T (L, K), and the LRAS curve, describe the process by which a decrease in income taxes impacts economic growth
Lower taxes on income shifts the supply of labor curve rightward, causing the equilibrium quantity of labor to increase. With more labor working, the economy would move up along its production function to a higher level of Real GDP. More Real GDP corresponds to a shifting of the LRAS curve rightward (economic growth).
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
The equilibrium to the game results in ________ for Amy and Tracy relative to what they could get if they could solve their ________.
A. lower payoffs; credible threat B. lower payoffs; commitment problem C. higher payoffs; commitment problem D. lower payoffs; prisoner's dilemma
The figure above shows the market for college education in the United States. The efficient quantity of college education is ________ students per year
A) 10 million B) 12 million C) 17 million D) 18 million E) 14 million
Refer to above figure. In the absence of a tariff and in the presence of trade, what is the country's consumer surplus?
What will be an ideal response?
Real business cycle theorists agree with new classical economists that
a. agents maximize utility and form expectations rationally. b. the labor market do not clear. c. imperfect information plays a big role in business cycles. d. Both a and c