Cross-elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good
a. True
b. False
Indicate whether the statement is true or false
True
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If a person is taxed $100 on an income of $1,000 . taxed $200 on an income of $2,000 . and taxed $300 on an income of $3,000 . this person is paying a(n):
a. progressive tax. b. poll tax. c. regressive tax. d. excise tax. e. proportional tax.
Assume that the full-employment level of output is $600 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $550 and, at the price level of 100, current aggregate demand is $450. If the government wants to move the economy back to the full-employment level of output and the MPC is 0.9, then it should
A. increase government purchases by $50. B. increase government purchases by $15. C. increase government purchases by $5. D. increase government purchases by $150.
Under the Bretton Woods system, a country with a balance of payments deficit
A. could get loans from the U.S. government. B. could devalue if deflationary policies failed to eliminate the deficit. C. was not allowed to devalue under any circumstance. D. was required to devalue its currency immediately.
One factor that contributed to the growth in the share of population employed in the United States between 1960 and 2010 was increased:
A. male labor force participation. B. female labor force participation. C. minimum wages. D. labor union participation.