Refer to the above figure. Which panel is consistent with the Laffer curve?
A. Panel A
B. Panel B
C. Panel C
D. Panel D
Answer: D
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All of the following lead to more rapid economic growth EXCEPT
A) restricting international trade. B) encouraging higher rates of saving. C) supporting more research and development. D) encouraging higher quality education.
The figure above gives your budget line for magazine and CDs per month. Given that your income equals $60 per month, what is your real income in terms of magazines?
A) 12 magazines B) 6 magazines C) 2 magazines D) $60/month
A perpetual payment of $10,000, offered for sale at $125,000, is being offered at an effective yield of
A) 8%. B) 9.2% C) 12.5%. D) 80%. E) 92%.
Which of these changes is observed in an economy when a recessionary gap is closed in the long run?
a. An increase in the inflation rate and a decrease in the unemployment rate b. An increase in the level of output and a decrease in the price level c. An increase in both the rate of output and the price level d. A decrease in both the rate of output and the price level e. A decrease in the inflation rate and an increase in the unemployment rate