Since 1940 the US Government has generally had a budget:

A tax wedge is ________

A) the difference between the tax rate on income and capital gains B) equal to the difference between what people earn before and after taxes are accounted for C) the size of the decrease in labor force participation when labor income is taxed D) the difference between the rate on Treasury securities and the income tax rate

Aggregate demand rises when the price level decreases because the lower price level causes

A) the market demand for all goods and services to decrease. B) the supply of money to decrease. C) the demand for money to rise causing interest rates to fall. D) the demand for money to fall causing interest rates to fall.