Suppose statistical surveys indicate that new orders for manufactured goods and new building permits for single-family homes are declining and that business inventories are rising. This implies economic activity is slowing down and the economy is potentially entering a recessionary period

________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium

A) Producer atrophy B) Deadweight loss C) Economic shortage D) Marginal cost

The supply-side economists expect that a cut in the marginal income tax rate, with lost revenues made up by a cut in government spending, would

a. increase output. b. decrease output. c. leave output unchanged. d. affect output but the direction of the effect is uncertain.