Author Question: Which of the following statements is true about Say's law? a. It states that supply creates its own ... (Read 37 times)

bobbie · **on:** Jun 30, 2018

Which of the following statements is true about Say's law?
a. It states that supply creates its own demand.
b. It states that demand creates its own supply.
c. It states that total output will always exceed total spending.
d. It states that consumption spending is the most volatile component of aggregate expenditures.
e. It is a major proposition of the Keynesian model.

Question 2

Consider two people, Sandy Smith, who earns 25,000 . and Gary Carver, who earns 50,000 . If the government has decided to tax everyone's first 25,000 at 20 percent and everyone's second 25,000 at 40 percent, then Gary pays:
a. 10,000 in taxes and Sandy pays 5,000 in taxes.
b. 10,000 in taxes and Sandy pays 10,000 in taxes.
c. 15,000 in taxes and Sandy pays 5,000 in taxes.
d. 15,000 in taxes and Sandy pays 10,000 in taxes.
e. 17,000 in taxes and Sandy pays 5,000 in taxes.