Which of the following is a way in which a government could encourage spending on research and development?
a. Increase the tax rate on capital gains
b. Enhance patent protection
c. Decrease funding to universities
d. Increase the tax on corporate profits
e. Increase the budget deficit
B
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According to the monetarist view, the aggregate supply curve is:
A. Upward sloping to the right. B. Perfectly vertical at the natural rate of unemployment. C. Flat or horizontal until full employment is reached. D. Flat or horizontal at all levels of output.
A graph can be used to illustrate the relationship between the price of compact discs and the quantity of compact discs demanded. If there is evidence that buyers' income also influences the demand for compact discs, then a movement along the curve can be caused by a change in the price of compact discs
a. True b. False Indicate whether the statement is true or false