A Keynesian economist would expect a supply-side tax cut to shift
A. only the aggregate supply curve outward.
B. only the aggregate demand curve outward.
C. both the aggregate demand and aggregate supply curves outward.
D. the aggregate supply curve outward and the aggregate demand curve inward.
Answer: B
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To derive a demand curve using utility analysis,
a. change a consumer's marginal utilities and note the effect of demand curve changes on market prices b. change a consumer's marginal utilities and note the effect of supply curve changes on market prices c. change a consumer's marginal utilities and note the effect of supply and demand curve changes on market prices d. note how the consumer's utility-maximizing consumption bundle changes in response to price changes e. note how the consumer's utility-maximizing consumption bundle changes in response to demand-curve shifts
Which of the following is an example of a transaction that is made even though complete information is not possible?
A. Joe buys a puppy in hopes that the puppy will be his hiking companion for the next 20 years. B. Alex buys house insurance and has never filed a claim. C. Mike saves his money by putting it in a mutual fund. D. All of these are examples of transactions that must be made with incomplete information.