Supply-side economics stresses that high marginal tax rates
a. are the key to maintaining a balanced budget.
b. are an effective short-run countercyclical tool to promote recovery from a recession.
c. discourage people from working harder and using their resources productively.
d. encourage people to work, supply resources, and use them more efficiently.
C
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Use the following graph showing the average total cost curve for a perfectly competitive firm to answer the next question.
At the long-run equilibrium level of output, this firm's profit
A. is $400. B. is zero. C. is $200. D. cannot be determined from the information provided.
If technology improves when a nation is in the intermediate range and only the Aggregate Supply changes, then:
a. Real GDP rises and average price level rises. b. Real GDP rises and average price level falls. c. Real GDP rises and real GDP remains the same. d. Real GDP remains the same and average price level falls. e. Real GDP remains the same and average price level rises.
Keynes believed which of the following?
A. The government has a role to play in fighting unemployment, but not in fighting inflation. B. The government has a role to play in fighting inflation and unemployment. C. The government has a role to play in fighting inflation, but not in fighting unemployment. D. The government does not have a role to play in fighting inflation or unemployment.
First, explain what the PS relation represents. Second, explain why it has its particular shape
What will be an ideal response?