Using the above figure, which of the lines in the above diagram represents a proportional tax?
A. A
B. B
C. C
D. none of them
Answer: B
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Hardcover Books The marginal cost of printing a typical hard cover novel is $12.00 while the same book in paperback has a marginal cost of $2.00 lower. So why do publishers charge an average of $15 more for hard cover books?
In general, the multiplier effect applies to changes in government spending but not to changes in taxation
a. True b. False Indicate whether the statement is true or false
According to Keynesians and monetarists, in the short-run, what happens to the aggregate price level when the money supply increases?
a) The aggregate price level falls. b) The aggregate price level rises. c) The aggregate price level falls and then rises. d) The aggregate price level does not change.
A price index in its base year:
A. is always greater than 100. B. is always less than 100. C. is always equal to 100. D. cannot be determined without knowing the price level in the base year.