The aim of supply-side economics is to:
a. increase government spending to stimulate aggregate supply
b. stimulate exports to increase the balance of payments.
c. decrease wages to make production cheaper.
d. lower taxes to increase the supply of resources.
e. reduce both the inflation and unemployment problems through increases in taxes.
d
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Consider a supply curve of the form: Q = c + dP. If d equals zero, then supply is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) elastic, but not infinitely elastic. D) infinitely elastic
The heart of the supply-side economic program was to
A. raise taxes. B. lower taxes. C. raise government spending. D. put people to work in government jobs.
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.
A depreciation of a nation's currency is
A) a situation in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand. B) the increase in the exchange value of one nation's currency in terms of an other nation. C) a nation in which households, firms, and governments buy and sell national currencies. D) the decrease in the exchange value of one nation's currency in terms of another nation.