Which of the following factors will not determine output and employment in the classical model?
a. Taxes that affect the incentive to work or hire labor
b. The level of government spending
c. The quantity of capital
d. Preferences for leisure
e. None of the above
B
Economics
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Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is the price of food (F, y-axis) and $100 is the price of shelter (S, x-axis). How much food can Joe buy if he buys one unit of shelter?
A) 2 units B) 200 units C) 250 units D) 400 units
Economics
Government policies that encourage savings
A) reduce interest rates. B) increase interest rates. C) have no effect on interest rates. D) lower the net present value of all investments.
Economics