The macroeconomist would most likely study:
A. the effects of changing beer prices on the market for pretzels.
B. the effects of an increased income tax on a typical household's purchase of goods.
C. how consumers in Gary, Indiana, respond to lower gasoline prices.
D. the effects of a reduction in income tax rates on the nation's total output.
Answer: D
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Autonomous expenditure is the component of
A) induced expenditure that changes when in real GDP changes. B) aggregate planned expenditure that changes only when government expenditure on goods and services change. C) aggregate expenditure that does not change when real GDP changes. D) aggregate expenditure that does not change when the interest rate changes. E) aggregate expenditure that changes when real GDP changes.
As output rises, the MRP of an imperfect competitor will _____ that of a perfect competitor.
A. rise faster than B. fall faster than C. rise at the same rate as D. fall at the same rate as
An efficiency wage is defined as
A. any wage scheme that is accepted by the union. B. a wage above the competitive wage that elicits greater effort on the part of workers. C. any wage scheme that pays all workers the same wage. D. a wage below the competitive wage that elicits greater effort on the part of the workers. E. any wage scheme that pays different workers different wages.
The government announces a tax increase on workers' wages to take effect in the future. What happens to current employment and the real wage rate?
A. Both employment and the real wage rate would increase. B. Both employment and the real wage rate would decrease. C. Employment would increase and the real wage would decrease. D. Employment would decrease and the real wage would increase.