After a negative demand shock, what are the expected long-run adjustments?
a. Wages rise, price level rises, and output falls back to potential
b. Wages fall, price level rises, and output falls back to potential
c. Wages fall, price level falls, and output increases back to potential
d. Wages fall, price level rises, and output increases back to potential
e. Wages rise, price level falls, and output increases back to potential
C
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The earned income tax credit (or EITC):
A. reduces the sales tax paid by low-income workers. B. provides tax credits to firms who hire low-income workers. C. gives low-income workers credits on their federal income taxes. D. reduces the tax rate on investment income.
Which of the following might increase the MB of eliminating lead pollution in water?
A. Companies are producing less and therefore polluting less in the water. B. Fewer people suffer from the effects of lead pollution. C. A new study found out that lead is even more dangerous than previously thought. D. Companies have found a cheaper way to decrease lead pollution.
If you are buying a bond that is newly issued by the corporation, you are buying it in the primary market.
Answer the following statement true (T) or false (F)
The U.S. national debt at the end of fiscal year 2014 was almost
A. $13.5 trillion. B. $9.0 trillion. C. $18 trillion. D. $1.3 trillion.