Cold turkey refers to the announcement and execution of tough measures to reduce high inflation
Indicate whether the statement is true or false
false
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The accompanying supply-demand diagram shows the market for calculators. The initial price of calculators is P0, and the initial quantity exchanged is Q0.
Which of the following situations could be correctly illustrated by the diagram?
a. Graphing capabilities and other new features lead people to buy more calculators.
b. The cost of memory chips used in calculators falls, lowering the price of calculators.
c. Personal computerized notepads with substantial computing power are introduced, reducing people's need for calculators.
d. A heavy tariff is placed on calculators imported from overseas.
Why do some policymakers support a consumption tax rather than an earnings tax?
a. The average tax rate would be lower under a consumption tax. b. A consumption tax would encourage people to save earned income. c. A consumption tax would raise more revenues than an income tax. d. The marginal tax rate would be higher under an earnings tax.
Which of the following would most likely cause a rightward shift in a demand curve?
a. a discovery about a product being made in sweat shops b. a recall of an automobile c. a celebrity promoting a sports drink d. an outbreak of E. coli in chicken
Figure 10-15
The economy's short-run (SRAS ) and long-run (LRAS) aggregate supply curves are shown in , along with three alternative aggregate demand curves and the accompanying equilibrium points. At which point will resource prices naturally tend to increase?
a.
A
b.
B
c.
C
d.
D