If the price of ice cream increases substantially (ceteris paribus), the equilibrium quantity of hot fudge sauce, a complement, is likely to:
a. increase, and the equilibrium price of hot fudge is likely to decrease.
b. increase, and the equilibrium price of hot fudge is likely to increase.
c. decrease, and the equilibrium price of hot fudge is likely to decrease.
d. decrease, and the equilibrium price of hot fudge is likely to increase.
c
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Which of the following is most important if a country wants to move from a low-income to a high-income status?
a. high rates of monetary growth. b. sustained economic growth. c. high real interest rates. d. high nominal interest rates.
Time spent filling out tax forms, time spent keeping tax records, and government resources spent to enforce tax laws are examples of the __________ of the U.S. income tax system
Fill in the blank(s) with correct word
Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, using the profit maximization rule, a monopolist will charge a price of
A. $300. B. $400. C. $500. D. $350.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower