Stagflation implies that
A) a tradeoff between inflation and unemployment may not always exist.
B) policymakers can choose to have less unemployment if they are willing to accept a higher rate of inflation.
C) the short-run Phillips curve is stable.
D) the short-run Phillips curve is vertical.
A
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As a result of an increase in the personal income tax rate, consumers are likely to
A) spend less. B) earn more money. C) save more. D) spend more.
A study by Edward Prescott found that the ________ marginal tax rates in the United States relative to Europe resulted in a ________ quantity of labor supplied in the United States
A) higher; smaller B) lower; smaller C) lower; larger D) higher; larger
_____ is determined by subtracting exemptions and deductions from total income
a. Adjusted gross income b. Taxable income c. Tax base d. Disposable income
The marginal tax rate shows
A) the percentage of income which a typical family pays in tax. B) the average rate of taxation in the economy. C) the deductions which are permitted for child care and medical expenses. D) the extra tax due on an extra dollar of income.