An inflation rate above the target rate will result in:
A. a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve.
B. a movement up along the monetary policy reaction curve and a leftward shift of the dynamic aggregate demand curve.
C. a movement up along the monetary policy reaction curve and a movement up the dynamic aggregate demand curve.
D. a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.
Answer: C
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Using the fiscal year 2017 estimates, the largest component of state and local revenue is the
A) individual income tax. B) corporate income tax. C) revenue from the federal government. D) sales, excise, and gross receipts taxes.
Suppose that the quantity of root beer demanded declines from 103,000 gallons per week to 97,000 gallons per week as a consequence of a 10 percent increase in the price of root beer. The price elasticity of demand is
A) 0.60. B) 1.40. C) 1.66. D) 6.00.
If the demand curve for a firm's output is P=100-2Q, the marginal revenue curve will be
A. MR=50-Q. B. MR-100-2Q. C. MR*=P*. D. MR=100-4Q.
Refer to Scenario 12.2. Suppose that the marginal cost falls such that:
MC = Q - 10 What is the profit maximizing level of output? A) 171.43 B) 120 C) 150 D) all of the above E) none of the above