When the tax rate increases, the absolute value of the tax multiplier falls.
Answer the following statement true (T) or false (F)
True
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Discouraged workers are discouraged because
A) their employers continue to underpay them. B) they are working part-time, but they want full-time work. C) they don't have jobs and are pessimistic about their chances of finding a suitable job. D) their employers are too demanding.
The above figure shows the payoff matrix for two firms, A and B, choosing to produce a basic computer or an advanced computer. How many pure-strategy Nash equilibria are in this game?
A) 0 B) 1 C) 2 D) 3
The money supply is best described as being:
A. determined by the amount of reserves. B. fixed, to avoid inflation. C. endogenously determined by the monetary system. D. determined by the size of the money multiplier.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.