A firm might be tempted to cheat on a collusive price-fixing agreement by setting a ________ price and producing ________ than agreed upon
A) lower; more
B) lower; less
C) higher; more
D) higher; less
A
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Briefly explain how a change in the personal income tax rate affects aggregate demand
What will be an ideal response?
As a percentage of total federal revenue, excise taxes have _____
a. risen slightly since 1960 b. remained constant since 1960 c. risen considerably since 1960 d. fallen since 1960
If the supply curve of a product changes so that sellers are now willing to sell two additional units at any given price, the supply curve will
A) shift leftward by two units. B) shift rightward by two units. C) shift vertically up by two units. D) shift vertically down by two units.
Which of the following pairs of policies have inconsistent effects on aggregate demand? a. A tax increase and an increase in the money supply
b. A transfer payment increase and an increase in the money supply. c. A reduction in government purchases and a reduction of the money supply. d. none of the above