Refer to the diagram in which S is the before-tax supply curve and S t is the supply curve after an excise tax is imposed. The efficiency loss of the tax is shown by areas:
A. A + B + C + E + F.
B. A + B + C.
C. A + B + F.
D. E + F.
D. E + F.
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If we knew that nominal GDP was currently $7500 billion, and that current GDP in dollars of 1992 purchasing power was $5000 billion, what would we know about the GDP deflator?
A) It would be .667. B) It would be 150. C) Nothing until we had current information on the price level, such as consumer price index figures. D) Only that a dollar buys more currently than it bought in 1992. E) Only that a dollar currently buys less than it bought in 1992.
The absence of cyclical unemployment means the economy is at the natural unemployment rate
Indicate whether the statement is true or false
If a good is price inelastic, a decrease in price will:
A) decrease total revenue. B) increase total revenue. C) not affect income. D) none of the above.
If all developed countries were willing to meet the U.N.'s Millennium Aid Goal for foreign aid, this would eliminate global poverty.
Answer the following statement true (T) or false (F)