What is supply-side economics?
What will be an ideal response?
Supply-side economics is the idea that creating incentives for individuals and firms to increase productivity will cause the aggregate supply curve to shift outward. It focuses on reducing marginal tax rates to create incentives to increase productivity.
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Will increased imports of supercomputers for industry promote economic growth?
What will be an ideal response?
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. What happens if Max receives a $100 cash grant to buy either meat or chicken?
A) Max will double his consumption of both meats. B) Max will spend it all on burger. Because of its lower price, he can buy more of it. C) Max will take advantage of the gift by buying all chicken because it is the more expensive meat. D) There is not enough information to answer the question.
Over one time horizon or another, Fed policy decisions influence
a. inflation and employment. b. inflation but not employment. c. employment but not inflation. d. neither inflation nor employment.
The Sherman Anti-Trust Act gave the U.S. government the power to control
a. monopolies b. public utilities c. the postal service d. the stock market