In the short run, nonprice rationing will happen whenever there is excess demand in a market.
Answer the following statement true (T) or false (F)
True
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Provide examples of goods or services whose elasticities of supply are (a) zero, (b) greater than zero but less than infinity, and (c) infinity
What will be an ideal response?
Which of the following policy actions shifts the aggregate-demand curve?
a. an increase in the money supply b. an increase in taxes c. an increase in government spending d. All of the above are correct.
Assuming an upward-sloping AS curve, if an economy is at full employment and consumption spending decreases while all other levels of spending remaining constant, then
A. Changes in consumption spending have no impact on GDP. B. Inventory levels are less than desired until a new equilibrium is reached. C. Increased unemployment results. D. Any GDP gap disappears.
The marginal tax rate is:
A. the difference between the total tax rate and the average tax rate. B. the percentage of total income paid as taxes. C. change in taxes/change in taxable income. D. total taxes/total taxable income.