The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If a $1 tariff is imposed on imported rice, the change in consumer surplus is
A) c + d.
B) c + d +g.
C) a + b + c + d.
D) f + g.
B
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Economists dismiss the idea that lower tax rates can lead to higher tax revenue, because there is a consensus that the relevant elasticities of demand and supply are very low
a. True b. False Indicate whether the statement is true or false
A macroeconomic variable is pro cyclical if
A. it grows faster than GDP B. its deviations from trend generally change before the deviation from trend in GDP do C. its deviations from trend generally change more than the deviations from trend GDP D. its deviations from trend are more often of the same sign as the deviations from trend GDP
A change in consumer taste will prompt a change in _____________.
Fill in the blank(s) with the appropriate word(s).
Refer to the above figure. If the relevant aggregate demand curve is AD2, what is the current economic situation?
A. inflationary gap B. recessionary gap C. overemployment D. equilibrium