Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. Initially after the payroll tax is imposed, there will be
A. an equilibrium in the labor market.
B. an excess supply of labor of 150 units.
C. an excess supply of labor or 100 units.
D. an excess demand for labor of 100 units.
Answer: B
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The policy of running deficits and only gradually increasing taxes later to service the debt is referred to as
A) tax-smoothing. B) Ricardian equivalence. C) generational accounting. D) crowding out.
Do macroeconomic issues concern the well-being of the typical individual member of an economy?
A) No, since we are focusing on the behavior of aggregate quantities. B) No, since most individuals have little contact with other economies in the world. C) Yes, since macroeconomic events have widespread effects on everyday lives. D) Yes, since macroeconomics focuses on the decisions constantly being made by the average individual.