According to Coase's analysis, when are private costs and social costs the same?
a. Always.
b. When there are no transactions costs.
c. When property rights are clearly defined.
d. Never.
b. When there are no transactions costs.
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If the MPC is 0.9 and the tax rate is 15%, a $100 increase in autonomous investment will increase equilibrium income by
A) $131. B) $426. C) $599. D) $850.
The product approach to measuring GDP values government production at
A) market prices. B) its cost of production. C) its estimated value to society. D) the total amount of taxes it collects.
When the aggregate supply curve shifts adversely, what happens to the relationship shown in the Phillips curve?
A. It is reinforced, and made more applicable for policy. B. It is destroyed, and no longer applies for policy. C. It is unchanged, although the curve becomes less steep. D. It is unchanged, although the curve shifts inward and to the left.
The FE line
A. slopes downward. B. is horizontal. C. is vertical. D. slopes upward.