An increase in taxes shifts the
A. aggregate supply curve outward.
B. aggregate demand curve outward.
C. consumption schedule upward.
D. consumption schedule downward.
Answer: D
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The profitability of an investment project will increase if
A. tax rates increase. B. real interest rates increase. C. real interest rates decrease. D. business tax deductions decrease.
The law of demand implies, holding everything else constant, that as the price of bagels increases
A) the demand for bagels will decrease. B) the demand for bagels will increase. C) the quantity of bagels demanded will increase. D) the quantity of bagels demanded will decrease.
Economic stabilization is best achieved by
a. fixing a tolerable point on the Phillips curve and staying there b. moderate shifts in the Phillips curve during periods of inflation c. moderate shifts in the Phillips curve during periods of unemployment d. fixing a tax rate that generates maximum tax revenue e. allowing the business cycle to run its course without government interference
If the slope of the indifference curve is steeper than the slope of the budget line, and X is on the horizontal axis:
A. the consumer is willing to give up more of good Y to get an additional unit of good X than is necessary under the current market prices. B. the consumer is willing to give up more of good X to get an additional unit of good Y than is necessary under the current market prices. C. MRS < ?PX/PY. D. MRS < PX/PY.