If personal income taxes and business taxes increase, then this will:
A. decrease aggregate demand and increase aggregate supply.
B. decrease aggregate demand and aggregate supply.
C. increase aggregate demand and decrease aggregate supply.
D. increase aggregate demand and aggregate supply.
Answer: B
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Refer to the graph shown, which depicts a perfectly competitive firm. When the industry is in long-run competitive equilibrium:
A. the price of the product will be $6. B. the firm will produce 100 units of output. C. the marginal cost of production will be $3. D. the firm will earn economic profits of $300 per day.
Based on this figure, in order to maintain an exchange rate of $0.15 dollars per Norwegian krone, the Norwegian government will have to spend (in dollars)________ worth of international reserves per period. 
A. $2,000 B. $5,500 C. $300 D. $825
The proposition that if property rights exist and are enforced, then private transactions are efficient is referred to as the
A) Coase theorem. B) property rights theorem. C) pollution rights theorem. D) emission rights theorem. E) private-market efficiency theorem.
The congestion tax implemented in Stockholm reduced traffic volume and cut travel time for cars and buses by 20%.
Answer the following statement true (T) or false (F)