President Clinton, at the beginning of his administration, increased personal income taxes on individuals with relatively high incomes. How will this change the consumption schedule?
A. It will shift and become steeper.
B. It will shift and become flatter.
C. It will shift in a parallel manner.
D. It will remain fixed as the economy moves along the schedule.
Answer: B
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For the recessions in the United States since the 1950s,
A) unemployment falls on average by 2 percentage points during the 12 months after a recession begins. B) unemployment rises on average about 5 percentage points during the 12 months after a recession begins. C) cyclical unemployment has been non-existent. D) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins.
A budget ________ occurs when government expenditures exceed tax revenues for a particular time period
A) deficit B) surplus C) surge D) surfeit
Consider the two graphs above. Suppose producers forecast a decrease in sales. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
The primary eligibility requirement for Social Security is
A. Total dollar amount of assets. B. Age. C. Poverty level. D. Income level.