The more price elastic the demand curve, the less quantity demanded will fall when a per-unit tax is imposed
Indicate whether the statement is true or false
F
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Refer to Figure 15-11. In the dynamic model of AD-AS in the figure above, the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues policy. This will result in
A) unemployment rates higher than what would occur if no policy had been pursued. B) real GDP lower than what would occur if no policy had been pursued. C) short-term interest rates higher than what would occur if no policy had been pursued. D) inflation higher than what would occur if no policy had been pursued.
An example of in-kind income is: a. a welfare payment
b. a cash grant. c. a housing subsidy. d. an unemployment check.
Gaming refers to a situation where:
A. employees increase output to gain commissions beyond the firm's capacity. B. employees consistently understate the target levels in order to meet them. C. employers fix unachievable output and target levels. D. employees inappropriately increase output to gain commissions.
The practice of tying is illegal on the grounds that
a. it allows firms to expand their market power. b. it allows firms to form collusive arrangements. c. it prevents firms from forming collusive agreements. d. the Sherman Act explicitly prohibited such agreements.