Using income as the tax base, which of the following best illustrates a regressive tax?
A. The corporate income tax.
B. A 7 percent general sales tax.
C. The personal income tax.
D. The federal inheritance tax.
Answer: B
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If potential output equals 8,000 and short-run equilibrium output equals 8,500, there is a(n) ________ gap and the Federal Reserve must ________ real interest rates in order to close the gap.
A. recessionary; not change B. recessionary reduce C. recessionary; raise D. expansionary; raise
Refer to Figure 4.5. In which of the following cases will you be rewarded with the most extra points?
A) Seven of your classmates choose Dash and you and the rest choose Solid. B) All of your other classmates choose Solid and you choose Dash. C) Half of your classmates choose Solid and you and the rest choose Dash. D) One of your classmates chooses Dash and you and the rest choose Solid.
An increase in the price level or in the real GDP, with velocity stable, shifts the :
a. money demand curve leftward. b. money supply curve leftward. c. money demand curve rightward. d. money supply curve rightward.
Angelina Jolie's economic rent from starring in a movie is equal to the difference between:
A. her final salary and what she could earn by starring in a different movie. B. her final salary and the least she would be willing to accept to star in the movie. C. her initial salary offer and her final salary, including royalties. D. her final salary and the average salary for leading actresses.