Many economists believe that tax cuts increase incentives to work and invest but current U.S. tax levels do not appear to be on the downward side of the Laffer curve

Technological innovations will cause:

a. the production possibilities curve to stay the same. b. the production possibilities curve to shift to the left. c. the production possibilities curve to shift to the right. d. an economy to operate below its production possibilities curve. e. the production possibilities curve to increase or decrease.

The national debt

a. will be zero when the federal budget is balanced. b. has been shrinking in the last 30 years. c. is equal to the government's budget deficit. d. can grow without negative economic effects. e. is a flow measure while the deficit is a stock measure.