The Keynesian economists do not believe that a cut in the marginal income tax rate will have strong effects on aggregate supply because they
a. do not believe that business investment will respond strongly to changes in the after-tax rate of return to capital.
b. do not believe that labor supply will respond strongly to changes in the after-tax real wage.
c. do not believe that labor demand will respond strongly to a change in the after-tax real wage.
d. believe monetary policy will be too restrictive to allow strong output growth.
B
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Special interests are most likely to be effective at _____
a. the federal level b. the state level c. and the county level d. at the city level
Your teacher decides to play a game where every student must contribute a dollar. All money collected is distributed at the end of the game among the students. This is an example of a
A) positive-sum game. B) zero-sum game. C) strategy. D) negative-sum game.