Question 1
Supporters of supply-side economics claim that ________ tax policies were quite successful in stimulating the economy because throughout most of the 1980s, federal receipts continued to rise even though tax rates had been cut.
◦ Jimmy Carter's
◦ Gerald Ford's
◦ Ronald Reagan's
◦ Richard Nixon's
Question 2
New Keynesian economics assumes rational expectations and
◦ sticky prices and wages.
◦ flexible prices and wages.
◦ flexible prices, but sticky wages.
◦ flexible wages, but sticky prices.