Use the following graph to answer the next question.
Suppose the economy is in equilibrium at point C. A personal income tax cut would most likely
A. move the economy upward from point C along AD1.
B. cause the AS curve to shift to the right.
C. move the economy downward from point C along AD1.
D. move the economy from point C toward point B.
Answer: D
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A 10 percent decrease in income decreases the quantity demanded of pizza by 3 percent. The income elasticity of demand for pizza is
A) -0.3. B) 0.3. C) 3.3. D) 10.0.
Prior to attending college, Marvin is offered a lucrative four-year contract as an actor in a daytime soap opera. Assuming that acting and attending college are Marvin's preferred alternatives and that he must choose between the two, his opportunity cost of attending college after receiving the offer ________________, making him ____________ likely to attend college than before he received the
offer. A) increases; less B) decreases; more C) stays the same; equally likely D) increases; more E) ?decreases; less
Which of the following is not correct?
a. Deficits give people the opportunity to consume at the expense of their children, but deficits do not require them to do so. b. Deficits and surpluses could be used to avoid fluctuations in the tax rate. c. The only times deficits have increased have been during times of war or economic downturns. d. Reducing the budget deficit rather than funding more education spending could, all things considered, make future generations worse off.
Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500 500 61,200 700 7 900 900 8 6001,100 9 3001,300Refer to Table 3.2. If the price per cheeseburger is $6, the price will
A. remain constant because the market is in equilibrium. B. decrease because there is an excess supply in the market. C. increase because there is an excess demand in the market. D. decrease because there is an excess demand in the market.