The most progressive tax of the major taxes employed in the United States _____

Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result,

A) aggregate demand will increase by 2.5%. B) the purchasing power of wages will rise if wages increase by 2.5%. C) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease. D) the short-run aggregate supply curve will shift to the left as wages increase.

Which of the following events would produce an upward shift in the consumption function, other things being equal?

a. An increase in consumer wealth. b. A decrease in consumer wealth. c. A decrease in autonomous consumption. d. None of these.