Along the composite aggregate supply curve,
a. at very low output levels, greater AD increases real output but not prices.
b. at intermediate output levels, greater AD increases both real output and prices.
c. at the full-employment level of output, greater AD increases prices but not real output.
d. All of these occur.
d. All of these occur.
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In the United States, the strategy of monetary policy
a. has not changed even as the economic environment has varied. b. has been to target interest rates. c. has been to target the money supply. d. None of the above
The personal income tax is based on the benefits-received principle of taxation
a. True b. False
The human consequences of the Great Depression included
a. homeless families. b. closed factories. c. bankrupt farmers. d. soup lines. e. all of the above conditions.
If a firm buys a building so as to have office space for its workers, the monthly opportunity cost of the building is best measured as
A) the monthly mortgage payment the firm must pay. B) the price the firm paid divided by twelve. C) zero. D) the rent the firm could earn if it rented the building to another firm.