Once supply side effects are taken into account, tax cuts for labor income can change

i. the supply of labor.
ii. potential GDP.
iii. the growth rate of potential GDP.
A) iii only B) ii only C) i only D) i and ii E) i and iii

D

Economics

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The aggregate production function shows the quantity and quality of resources used in production given the efficiency with which resources are utilized and the prevailing technology

Indicate whether the statement is true or false

Economics

Which of the following will the Federal Reserve do to decrease the money supply?

a. Decrease the salaries of government employees. b. Sell government bonds. c. Buy government bonds. d. Raise taxes. e. Sell corporate bonds.

Economics