In the figure above, suppose that the government imposes a tax of $4 per pizza. Then, the tax revenue collected by the government equals
A) $240.
B) $320.
C) $160.
D) $120.
E) $4.
A
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Say's Law states that by purchasing goods and services, buyers stimulate firms to produce goods and services equal to what has been purchased: Demand creates its own supply
a. True b. False
The president is told that an inflationary gap must be closed but that consumers are increasing their spending on consumption and producers increasing their demand for investment goods. If the gap is to be closed, the President must
a. rely on reducing the price level b. resort to creating a deficit budget c. increase aggregate demand d. rely on increasing the price level e. resort to creating a surplus budget
Figure 9-3
?
In Figure 9-3, investment plus net exports equals
A. $200 billion. B. $400 billion. C. $600 billion. D. $800 billion. E. $1,200 billion.
If the average interval between firms' price adjustments is relatively short
A. a reduction in aggregate demand will cause a relatively long-lived reduction in real Gross Domestic Product (GDP). B. an increase in aggregate demand will cause a relatively long-lived increase in real Gross Domestic Product (GDP). C. an increase in aggregate demand will cause a relatively short-lived increase in real Gross Domestic Product (GDP). D. a reduction in aggregate demand will cause a relatively long-lived increase in real Gross Domestic Product (GDP).