The nation of Hyperbole is in a recession, and the government decides to increase taxes and reduce government spending to reduce the growing deficit. This will ________ aggregate demand and will likely ________ real GDP and employment

"No individual should have less than $20,000 income in the United States in 2010" is an example of

A) a normative statement. B) a positive statement. C) an illogical and refutable statement. D) a truism.

Income effect of lower wages implies

a. workers prefer leisure to work. b. an increase in the productivity of labor. c. a fall in the demand for labor. d. workers would want to work more.