Suppose Carmen buys ramen noodles. To determine whether ramen noodles are a normal or inferior good for her, we must observe how Carmen
A) responds to a change in the price of a substitute for ramen noodles.
B) responds to a change in the price of a complement for ramen noodles.
C) responds to a change in the price of ramen noodles itself.
D) responds to a change in her income.
E) responds to all of the above.
D
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________ usually increase(s) when the U.S. economy is in a recession and decrease(s) when the U.S. economy is expanding.
a. Consumer spending b. Planned investment c. Net Exports d. Unplanned investment
The balanced budget multiplier is
A) positive because the magnitude of government expenditure multiplier is larger than the magnitude of tax multiplier. B) negative because the magnitude of government expenditure multiplier is larger than the magnitude of the tax multiplier. C) positive because the magnitude of government expenditure multiplier is smaller than the magnitude of tax multiplier. D) equal to zero. E) negative because the magnitude of the tax multiplier is larger than the magnitude of the government expenditure multiplier.
Officially, the payroll tax is referred to as
a. the trust fund tax. b. Social Security tax. c. contributions for social insurance. d. investment in Social Security.
In the long run under monopoly,
a. the MC curve will lie to the left of the output at which AC and AR meet. b. MC = MR = P. c. MC = MR = AR. d. the MC curve will lie to the right of the output at which AC and AR meet.