Recovery from the 1990-91 recession occurred because wages fell and the aggregate supply curve shifted downward
a. True
b. False
B
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A lump sum tax can create an excess burden.
A. True B. False C. Uncertain
If the price of a good increases and the total revenue also increases, the good has a(n)
A) elastic demand. B) inelastic demand. C) unit elastic demand. D) perfectly elastic demand.
Which of the following is true about income inequality?
A. Inequality tends to be greatest in the poorest countries. B. Inequality tends to diminish as the population increases. C. Inequality is not an issue for developed countries. D. Inequality tends to get worse as a country develops.
Suppose two countries are identical in every way with the following exception. Economy A has a higher saving rate than economy B. Given this information, we know with certainty that
A) steady state consumption in A is higher than in B. B) steady state consumption in A is lower than in B. C) steady state consumption in A and in B are equal. D) steady state growth of output per worker is higher in A than in B. E) none of the above