Refer to the figures. Which figure(s) represent(s) a situation where negative demand shocks can result in a recession?
A. A only.
B. B only.
C. Both A and B.
D. Neither A nor B.
B. B only.
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The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. How much tax revenue does the government raise from this tax?
A) $2,000 B) $3,000 C) $4,000 D) $6,000
Predatory dumping is a common problem in the United States
Indicate whether the statement is true or false
In the Keynesian model, a Federal Reserve sale of government securities in the open market will
a. raise the level of income and lower the interest rate. b. raise the level of income and raise the interest rate. c. lower the level of income and the interest rate. d. lower the level of income and raise the interest rate.
Core inflation is measured because the prices of:
A. food and energy costs fluctuate frequently and can distort actual changes in the cost of living. B. retail consumption items fluctuate frequently and can distort actual changes in the cost of living. C. nondurable goods fluctuate more frequently than the prices of durable goods; therefore, removing them from the basket prevents potential distortion. D. durable goods fluctuate more frequently than the prices of nondurable goods; therefore, removing them from the basket prevents potential distortion.