Classical economic theory predicted that in the long run the ...

[justinmsk]

Classical economic theory predicted that in the long run the economy would experience:
 a. below full unemployment.
  b. rising rate of inflation.
  c. full employment.
  d. idle factors of production.

Question 2

A tax whose impact varies inversely with the income of the person taxed, and poor people have a higher percentage of their income taxed than rich people, is known as a:
 a. regressive tax.
  b. progressive tax.
  c. proportional tax.
  d. flat tax.
  e. tax holiday.

[hugthug12]

Answer to Question 1

c

Answer to Question 2

a