An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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A typical consumer spends 30% of income on housing and housing is a necessity for consumers (the income elasticity for housing is 0 < ?H < 1 ). What are the maximum and minimum values for the income elasticity of all other goods, ?O?
What will be an ideal response?
Grocery store coupons, mail-in rebates, senior discounts, and in-state versus out-of-state tuition fees are all examples of:
a. government intervention. b. price neutrality. c. arbitrage pricing. d. price discrimination. e. illegal business practice.
How much of all income tax is paid by the top 10 percent of earners?
a. one-third b. two-thirds c. one-fourth d. one-half
Many economists argue that the most efficient way to control pollution is to
A. ban all activities that create pollution. B. enforce legal standards on air and water quality. C. promote environmental awareness among citizens. D. impose taxes on emissions.