According to the new classical view, when the actual price level is greater than the expected price level
A) aggregate output is above the full employment level.
B) aggregate output is below the full employment level.
C) the aggregate supply curve will slope downward.
D) the coefficient a is equal to zero.
A
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The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the efficient amount of paper will be produced by setting a Pigovian tax of
A) $5 per ton. B) $10 per ton. C) $20 per ton. D) $40 per ton.
Most U.S. redistribution occurs from _____
a. high-income individuals to low-income individuals b. middle-income individuals to low-income individuals c. middle-income individuals to middle-income individuals d. low-income individuals to middle-income individuals
If demand for a good is price elastic, then the price elasticity will be:
a. equal to one. b. equal to zero. c. greater than one. d. less than one. e. less than zero.
Since World War II, GATT has been responsible for reducing the average tariff among member countries from about
a. 40 percent to about 5 percent. b. 40 percent to about 20 percent. c. 80 percent to about 20 percent. d. 20 percent to about 10 percent.