An increase in the income tax rate leads to a large increase in deadweight loss if ________
A) the labor supply curve is highly elastic
B) the labor supply curve is perfectly inelastic
C) the labor demand curve is elastic
D) the labor demand curve is perfectly inelastic
A
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Everything else held constant, a decrease in the excess reserves ratio causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
Using AD & LRAS explains the business cycle.
a. true b. false
Which of the following is not a necessary characteristic of money?
A. Available in unlimited supply B. Divisible C. Durable D. Difficult to counterfeit
An increase in aggregate supply increases the real domestic output and reduces the price level effects from an increase in aggregate demand.
Answer the following statement true (T) or false (F)