A flat-rate tax structure is one:
a. whose marginal rate increases as income increases.
b. whose average rate equals the marginal rate.
c. that has graduated rates.
d. whose marginal rate decreases as income increases.
Answer: b. whose average rate equals the marginal rate.
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Which region of the world experienced a decade-long crisis and stagnant or even negative growth rates during the 1980s?
A) Latin America B) East Asia C) The United States and Canada D) Europe E) The European Union
The quantity of medical care demanded appears to be highly sensitive to changes in price
a. True b. False Indicate whether the statement is true or false
Which of the following could lead to a decline in aggregate supply in the U.S.?
a. The discovery of new mineral deposits in Arizona b. Higher real wage rates in the U.S. c. Lower personal income in France d. Cutbacks in government borrowing e. Rapid depreciation of the Swiss franc
One of the reasons why the Phillips curve is no longer viewed as a "menu" of possible choices available to policy makers is that
a. in the 1970s and 1980s there was no inflation at all. b. analysis indicates there was no such "menu" in the 1960s. c. in the 1970s and 1980s much inflation came from the supply side. d. economic theory is unable to explain the curve and, therefore, it has been rejected.