Keynes once remarked that, in the long run, we're all dead. He was responding to the conventional wisdom of classical economics who argued that:
a. the supply curve should remain vertical in the long run.
b. World War I was fought to free Britain from economic ruin.
c. depression was only a short-run, temporary departure from full-employment equilibrium.
d. funeral plots need to be determined by the market.
e. market-based realities cause the estate tax to be too high.
Question 2
Jose pays a tax of 24,000 on his income of 60,000 . while Richard pays a tax of 3,000 on his income of 30,000 . This tax is:
a. a flat tax.
b. progressive.
c. proportional.
d. regressive.
