Specialization and trade allow an economy to expand its:

Personal income taxes are reduced as part of an expansionary fiscal policy. What is the impact on aggregate expenditures and income?

A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.

One advantage of a partnership is

A) lower costs. B) they are easy to form. C) all the profits go to the older partner. D) they are double taxed.