Which of the following would shift the aggregate demand curve to the right?
A) an increase in government spending
B) an increase in taxes
C) an increase in interest rates
D) an increase in input prices
Answer: A) an increase in government spending
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Who does inflation benefit?
(a) All businesses (b) The government (c) Individuals living on fixed incomes (d) Debtors
If the costs of negotiating and enforcing contracts are high relative to the benefits, buyers and sellers will have incentives to make economically efficient arrangements that increase value
Indicate whether the statement is true or false
Which of the following is a normative statement? a. An increase in taxes will cause higher unemployment
b. An increase in tariffs will increase the domestic prices paid by consumers. c. Income should be redistributed from the top 2% of wage earners to the lower income brackets. d. Running government budget deficits leads to higher market interest rates.
Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. If the family earns $10,000 through working, its total income would equal
a. $10,000 b. $15,000 c. $17,500 d. $22,500 e. $25,000