Which of the following fiscal policy actions is most likely to increase aggregate supply?
A. An increase in personal income tax rates.
B. A reduction in interest rates that encourages consumers to purchase more durable goods.
C. An increase in transfer payments to unemployed workers.
D. An increase in government spending on infrastructure that increases private sector
productivity.
D. An increase in government spending on infrastructure that increases private sector
productivity.
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Which of the following would lead GDP to overstate economic welfare?
A) the existence of home-cooked meals B) restaurant workers that under-report tip income C) a self-employed CPA who takes a longer than normal vacation D) electric utilities that switch to burning coal because of higher natural gas prices and thereby create more acid rain pollution
If a coupon bond has a "face value" of $1000, it means that
A) the original purchaser paid $1000 for it. B) each purchaser must pay $1000 for it. C) it was purchased for at least $1000 and perhaps more. D) the holder will be paid $1000 when the bond matures. E) the holder will be paid $1000 plus accumulated interest when the bond matures.
Even with market power, monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices
a. True b. False Indicate whether the statement is true or false
Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. What is the cost to Firm B of eliminating 2 tons of pollution?
A. $350 B. $250 C. $300 D. $140 E. $540