When making income comparisons across countries, economists generally prefer to use
a. the exchange rate conversion method.
b. the consumer price index ratio method.
c. the purchasing power parity method.
d. the interest rate differential conversion method.
C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Some economists argue that corporate income taxes are typically not paid by firms, but by
A) stockholders, employees, and consumers. B) the government. C) bond holders. D) the board of directors of the firm.
Principal-agent problems are not addressed in the market for corporate control
Indicate whether the statement is true or false
D. A sharp increase in the natural rate of unemployment
A. Very high debt levels of households B. Consumers raised their saving rates C. The stimulus package caused prices to fall in many sectors D. The effects of the stimulus package were diffuse and spread thinly among many sectors