If the government's goal is to generate a certain amount of tax revenue, a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare
Indicate whether the statement is true or false
False. The ad valorem tax will reduce output and consumer surplus by less than the specific tax would.
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Aggregate demand
A) decreases if expected future income rises. B) increases if the exchange rate rises. C) increases if government expenditures decrease. D) increases if the expected inflation rate increases. E) increases if aggregate supply increases.
In the short run, which are most important in determining changes in output?
A. Marginal cost and marginal revenue B. Total costs and revenue C. Average cost and average revenue D. Fixed costs
An increase in the money wage rate will cause the aggregate supply curve to shift
A. outward, which means the quantity supplied at any price level decreases. B. outward, which means the quantity supplied at any price level increases. C. inward, which means the quantity supplied at any price level increases. D. inward, which means the quantity supplied at any price level decreases.
Explain why many industrialized countries do not often intervene in the foreign exchange market.
What will be an ideal response?