Question Completion Status:

QUESTION $8$

Which of the following does not describe why Say's Law is important?

A$.$ To prove that supply equals demand in all markets simultaneously $($general equilibrium$).$

B$.$ To separate "effective demand" from "notional demand".

C$.$ To restate the fundamental truth of the Quantity Theory of Money.

D$.$ To connect microeconomic logic to macroeconomic theory.

E$.$ To prevent us from assuming real resources come from nowhere.

QUESTION $9$

Which of the following is true?

A$.$ When a country runs a large merchandise trade deficit the country will enter a recession.

B$.$ When a country runs a merchandise trade deficit, that country is running a Capital Account surplus.

C$.$ The Capital Account counts the value of all imports and exports.

D$.$ Services are generally over$-$counted in the Current Account.

E$.$ Both C and D are true

QUESTION $10$

What is true with respect to supply$-$side economics?

A$.$ Tax cuts always increase government revenue.

B$.$ Supply$-$side economics has never been demonstrated to work in practice.

C$.$ Tax increases over the inelastic portion of the Aggregate Supply curve always decrease government revenue.

D$.$ Keynesians anticipated the supply$-$side revolution because they focused on fiscal policy $($tax and spend$).$

E$.$ Incentives are important for the production side of the economy.