Classical economists believe that:
a. wage ,price, and interest rates are inflexible.
b. wage, price, and interest rates are flexible.
c. fiscal policy should be used to stabilize the economy.
d. monetary policy should be used to stabilize the economy.
Question 2
Consider two people, Sandy Ross, who earns 25,000 . and Gary Belcher, who earns 50,000 . If the flat-tax rate is 20 percent, then:
a. the government collects a total of 20,000.
b. Gary pays twice the tax amount Sandy pays.
c. Gary pays three times the tax amount Sandy pays.
d. Gary and Sandy pay exactly the same tax amount.
e. Gary pays 15,000 in taxes.
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