Author Question: Let S = y - (100 + 0.5y). Assume no government or foreign sectors. At the equilibrium level of ... (Read 114 times)

swpotter12 · **on:** Jun 30, 2018

Let S = y - (100 + 0.5y). Assume no government or foreign sectors. At the equilibrium level of income, y = 800, the level of saving is

A) 0. B) 50. C) 100. D) 300.

Question 2

Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, real wages in country A will tend to ________ and employment in country A will tend to ________.

A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase