If the expenditure schedule lies above the level of potential GDP, then there is a(n)
a. recessionary gap.
b. precautionary gap.
c. deflationary gap.
d. inflationary gap.
d
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The government redistributes income to the poor, primarily through
a. progressive taxes. b. transfer payments. c. government purchases. d. both a and b.
Because the marginal tax rate rises as income rises,
a. higher income families, in general, pay a larger percentage of their income in taxes. b. lower income families, in general, pay a larger percentage of their income in taxes. c. a disproportionately large share of the tax burden falls upon the poor. d. higher income families pay the same percentage of their income in taxes as lower-income families.
A(n) ___________ in income will shift the budget line to the left.
a. increase b. decrease c. no change
Firms A and B are identical, produce identical products, and are the only firms in a market. Firm A's output is higher than Firm B's. This means that Firm B is the
A) Cartel leader. B) Stackelberg leader. C) Stackelberg follower. D) Cournot leader.