According to supply-siders the main consequence of reducing tax rates is
A) increases aggregate demand and the price level.
B) increases in aggregate supply.
C) increases in aggregate supply and the price level.
D) making the aggregate supply curve upward-sloping.
B
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In the short run, a perfectly competitive firm can experience which of the following?
i. an economic profit ii. an economic loss but it continues to stay open iii. an economic loss equal to its total fixed cost when it shuts down A) only i B) i and ii C) i and iii D) ii and iii E) i, ii, and iii
Holding all else constant, an increase in the preferences of Americans for Mexican goods will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease