Which of the following is emphasized by supply-side economics?
a. The impact of budget deficits on interest rates and aggregate demand.
b. The impact of government spending on aggregate demand, output, and employment.
c. The impact of marginal tax rates on aggregate supply.
d. The impact of budget deficits on the rate of taxation in the future.
c
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Ramsey prices for a budget-constrained (breakeven) multi-product firm will allow the same welfare loss per dollar of contribution to fixed costs for every product
Indicate whether the statement is true or false
A firm's labor demand curve shows the relationship between the
a. wage rate and the quantity of labor supplied b. marginal revenue product of labor and the marginal product of labor c. wage rate and the quantity of labor demanded d. marginal product of labor and the quantity of labor demanded e. wage rate and the quantity demanded of the good produced by labor