If personal taxes were decreased and resource productivity increased simultaneously, the equilibrium ________.
A. price level would necessarily rise
B. price level would necessarily fall
C. output would necessarily fall
D. output would necessarily rise
Answer: D
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Refer to Figure 6.1. Which of the following statements is false?
A) At point E the marginal product of labor is decreasing. B) At point E the marginal product of labor is negative. C) At point E the average product of labor is decreasing. D) At point E the average product of labor is negative. E) At point E the marginal product of labor is less than the average product of labor.
Briefly discuss different methods of allocating quota licenses to the importers by the government. Also explain the inefficiency implications of each method.
What will be an ideal response?
A decrease in the supply of money will, according to the quantity theory of money, lead to
A. a lower real Gross Domestic Product (GDP). B. a higher price level. C. a higher nominal Gross Domestic Product (GDP). D. a lower price level.
Suppose that when the price of oranges decreases, Sarita decreases her purchases of peaches. To Sarita,
A) oranges and peaches are complements. B) oranges and peaches are inferior goods. C) oranges and peaches are normal goods. D) oranges and peaches are substitutes.