Expectations that disposable income will increase in the future will _____
a. shift the current consumption function upward
b. shift the current consumption function downward
c. result in an upward movement along the current consumption function
d. make the current consumption function flatter
e. make the current consumption function steeper
a
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The Japanese economy is stuck in a recessionary gap. The proper fiscal policy could include a(n)
a. decrease in taxes. b. increase in government purchases. c. increase in transfer payments. d. All of the above are correct.
Most labor economists believe that the supply of labor is
a. less elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax. b. less elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. c. more elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. d. more elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax.