Which of the Following Statements Is Correct

question 145

Multiple Choice

Which of the following statements is correct?

• A)According to the evidence from major industrial countries, there is no significant relationship between tax rates and the average number of hours worked per week.
• B)In the early 1970s, the average French worker worked more hours per week than the average American worker; by the mid-1990s, the reverse was true.
• C)Between the early 1970s and the mid-1990s, labor taxes in France decreased while labor taxes in the United States remained roughly constant.
• D)All of the above are correct.

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Definitions:

Aggregate-Demand Curve

A graph that shows the relationship between the overall price level and the total demand for goods and services in an economy.

Money Supply

The total of all monetary assets within an economy at a specific instant, comprising cash, coins, and balances in checking and savings.

Long-Run Aggregate-Supply

is the total supply of goods and services that a country's economy can produce over time when all inputs are used to their full potential.

Aggregate Demand

It's the total demand for goods and services in an economy at a given overall price level and in a given time period.