Supply-side economics stresses that
a. aggregate demand is the major determinant of real output.
b. marginal tax rates exert important incentive effects that influence real output.
c. an increase in government expenditures and tax rates will cause real income to rise.
d. expansionary monetary policy will cause real output to expand without accelerating inflation.
B
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What would the Herfindahl-Hirschman Index equal for an industry consisting of 20 firms with each holding a 5 percent market share?
A. 20 B. 100 C. 500 D. 2,500
The most important factor in reversing the economic decline of 1929-1933 was that
A. the federal government finally balanced its budget. B. the stock market began to rise. C. people became more optimistic. D. the federal government began to spend a huge amount of money.
Relating to the Economics in Practice on page 338: A number of companies are using their own internal carbon taxes to reflect the social cost of carbon emissions on the environment. The price per ton of carbon emissions that they are using
A. has been set by the government. B. is the price established by the EPA. C. is not standardized. D. has been agreed to by the private sector.
A worker who loses a job at a call center because the company moved the call center operations to another country is an example of:
A. Frictional unemployment B. Structural unemployment C. Cyclical unemployment D. Disguised unemployment