The potential level of real GDP is the level of output a society can achieve when labor is employed at its natural level.
a. true
b. false
Ans: a. true
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In the above table, which tax plan is proportional?
A) only plan A B) only plan B C) only plan C D) both plan A and plan C
A normative economic statement such as "The minimum wage should be abolished"
a. would likely be made by an economist acting as a scientist. b. would require values and data to be evaluated. c. would require data but not values to be evaluated. d. could not be evaluated by economists acting as policy advisers.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The tax which is most difficult to shift to others would be the:
A. Personal income tax B. Corporate income tax C. Specific excise taxes D. Business property taxes