Both Keynesians and supply-siders believe that tax cuts
a. will increase income by increasing aggregate supply.
b. will increase income by increasing aggregate demand.
c. will increase income but for different reasons.
d. will increase income in the Keynesian model but decrease income in the Supply-side model.
C
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According to economic theory, the political process tends to
A) benefit every participant equally. B) harm every participant equally. C) concentrate benefits in the hands of special interest groups and disperse the costs throughout the uninformed voters. D) support public projects that clearly pass a strict benefit-cost analysis.
Labor productivity depends on the
a. the effectiveness of government b. the availability of technology c. the proportion of the labor force that is unionized d. the size of the economy e. All of the answers are correct