18) Nicolas earns $55,000 per year working fulltime. Between state and federal taxes, his
income is taxed at 35 percent. Nicolas pays a monthly rent of $1,000 and his food
expenses add up to $500 a month. What is Nicolas' annual disposable income ($Y_D$)?
a) $37,000
b) $17,750
c) $24,050
d) $35,750
19) According to the economist John Maynard Keynes:
a) prices and wages immediately adjust downward when the economy falls into a
recession.
b) government spending should not exceed government revenue.
c) household spending does not influence the economic output.
d) firms only produce output if there is demand for it.