Which of the following is not held constant in the short run when determining the aggregate supply curve?
a. Interest rates
b. Rent
c. Wages
d. Profit
e. Price level
e
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A price-taker faces a demand curve that is:
A. upward sloping. B. horizontal at the market price. C. downward sloping. D. vertical at the market price.
Who benefits from an import quota on a good?
A) domestic consumers of the good B) foreign governments C) domestic producers of the good D) foreign producers of the good
Which of the following gave the U.S. federal government the power to tax income?
A. The Full Employment and Balanced Growth Act of 1978. B. The capital gains tax of the Bush administration. C. The Sixteenth Amendment to the Constitution. D. The Social Security Act.
Assume that taxes depend on income. The MPC is 0.75 and t is 0.2. If government spending increases by $10 billion, the equilibrium level of output will increase by
A. $16.7 billion. B. $25 billion. C. $50 billion. D. $100 billion.