Author Question: If the economy were left on its own without the interference of government or the Fed, it would move ... (Read 97 times)

Pineapplelove6 · **on:** Jun 30, 2018

If the economy were left on its own without the interference of government or the Fed, it would move toward an equilibrium rate of growth that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. Classical.
b. Keynesian.
c. Monetarism.
d. Supply-side.
e. Neo-Keynesian.

Question 2

Suppose a person with an income of 20,000 pays a tax of 2,000 . If the tax is progressive, then how large of a tax will a person with an income of 40,000 pay?
a. Exactly 2,000.
b. Between 2,000 and 4,000.
c. Exactly 4,000.
d. More than 4,000.