Which one of the following macroeconomic theories is most closely associated with the Laffer curve?
A. Monetarism
B. New classical economics
C. Keynesian economics
D. Supply-side economics
D. Supply-side economics
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A firm produces an output level at which price is greater than marginal cost. Explain why this is inefficient
What will be an ideal response?
As the price of tomatoes fell from $2.50 to $2.00, the quantity imported from Mexico fell from 1,800 tons to 900 tons. The elasticity of supply of tomatoes imported from Mexico is:
A. 5. B. 0.25. C. 3.0. D. 0.3.
The distribution of income in the United States is skewed so that the mode level of household income is ________ the median household income and the median household income is ________ than the mean household income
A) less than; less than B) less than; greater than C) greater than; greater than D) greater than; less than
Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y3.
D. P2 and Y1.