A tax rebate, which is expected to be offered in this and all future years, will
A) have a small positive effect on consumption and aggregate demand.
B) have no effect on consumption and aggregate demand.
C) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate.
D) increase aggregate supply and aggregate demand.
Answer: C
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Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?
A) 30.7 percent B) 6.7 percent C) 5.4 percent D) 5.1 percent
A cost that has already been made and cannot be recovered is called a
A) variable cost. B) fixed cost. C) sunk cost. D) marginal cost.
What condition must be satisfied for the optimal level of a public good to be provided? Explain the problem of the optimal provision of public goods
What will be an ideal response?
Changes in business inventories are not considered part of gross private domestic investment spending
Indicate whether the statement is true or false