The model of aggregate demand and aggregate supply can NOT be used to:
A. discuss the pros and cons of income tax cuts.
B. to discuss income distribution.
C. assess a tax cut's effect on longer run issues such as the national debt.
D. evaluate a tax cut's effect on short run economic fluctuations.
Answer: B
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One type of demander in the loanable funds market
A) lends funds to purchase financial capital. B) lends funds to purchase physical capital. C) wants physical capital in order to purchase financial capital. D) wants funds to purchase financial capital. E) wants funds to purchase physical capital.
The textbook cites an estimate of the "sacrifice ratio" in the United States of approximately
A) one-third. B) one-half. C) one. D) three. E) six.
Macroeconomics is concerned with studying the
A) behavior of individual decision makers. B) performance of the economy as a whole. C) prices of specific companies' stocks. D) wants of individual consumers.
Which type of unemployment is most closely connected with the saying "you can't teach an old dog new tricks"?
a. cyclical b. frictional c. structural d. voluntary e. involuntary