In the long run, the corporate profits tax will lead to
A. higher profits in the corporate sector and higher profits in the noncorporate sector.
B. higher profits in the corporate sector, but lower profits in the noncorporate sector.
C. lower profits in the corporate sector, but higher profits in the noncorporate sector.
D. lower profits in the corporate sector and lower profits in the noncorporate sector.
Answer: D
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The aggregate supply curve will shift to the left if
a. energy prices fall. b. technology and productivity increase in the economy. c. the capital stock of the economy increases. d. the money wage rate increases.
The "natural" rate of unemployment is the unemployment rate toward which the economy gravitates in the
a. short run, and the natural rate is constant over time. b. long run, and the natural rate is constant over time. c. short run, and the natural rate changes over time. d. long run, and the natural rate changes over time.
In terms of the world as a whole, imports must equal exports because
A. Every good exported by one country becomes an import for another country. B. The United Nations requires it. C. Most countries, other than the United States, have a balanced trade situation. D. It is part of international law.
Governments contribute to increased average labor productivity in each of the following ways except by:
A. allowing the free and open exchange of ideas. B. establishing well-defined property rights. C. maintaining political stability. D. imposing taxes on wages.