Which of the following would most likely cause an increase in aggregate demand?
a. an increase in the corporate income tax
b. an increase in interest rates
c. an increase in the budget deficit
d. an increase in personal income tax rates
C
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Economists are reluctant to state that price controls are desirable or undesirable because
A) whether the gains from the winners exceed the losses from the losers is not strictly an economic question. B) it is impossible to evaluate the impact on quantity demanded and quantity supplied as a result of price controls. C) sometimes price controls result in increases in economic efficiency and sometimes they result in decreases in economic efficiency. D) economists are reluctant to conduct positive analysis of price controls.
Heavy business taxes
(a) vary according to firm size. (b) benefit small firms but cost large ones. (c) stifle entrepreneurial activity. (d) can be described by all of the above.