Examlex
Which of these dichotomies best characterizes the relationship between System-1 and System-2 thinking?
Marginal Tax-Rate
The rate at which the next dollar of taxable income is taxed.
Substitution Effect
The change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution.
Income Effect
The change in consumption that results when a price change moves the consumer to a higher or lower indifference curve
Aggregate Demand
Aggregate demand represents the total demand for goods and services within an economy at a given overall price level and in a given time period.
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