When there is a large government deficit, what will happen to the aggregate demand curve?
a. It will shift to the left.
b. It will shift downward.
c. It will shift to the right.
d. It will not shift.
c. It will shift to the right.
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One proposal is to index social security payments
a. to the CPI minus half a percentage point to correct for the CPI's overstatement of inflation. b. to the CPI plus half a percentage point to correct for the CPI's overstatement of inflation. c. to the CPI minus half a percentage point to correct for the CPI's understatement of inflation. d. to the average tax rate that social security recipients face. e. to the average increase in the CPI over the last five years.
In the law of torts, what is meant by a negligence standard? How does a negligence standard promote economic efficiency? How can it lead to less-than-efficient outcomes?
What will be an ideal response?