The short-run aggregate supply curve has a
A) negative slope. B) positive slope.
C) slope equal to zero. D) slope equal to infinity.
B
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Because the income tax structure is progressive, the amount of taxes paid is a _____
a. constant fraction of income throughout the business cycle b. larger fraction of income in expansions than in contractions c. smaller fraction of income in expansions than in contractions d. decreasing function of income in both expansions and contractions e. constant amount at all levels of output and income
The consumer price index [CPI] measures price changes at an earlier stage of production than the producer price index [PPI], hence, increases in the CPI are usually followed by increases in the PPI
a. True b. False Indicate whether the statement is true or false
If credible low-money-growth policies were continually pursued by the Fed, nominal wages and prices would eventually fall as the economic agents would expect lower inflation rates over time
a. True b. False Indicate whether the statement is true or false
Under a regulatory fair price,
a. price is driven to zero b. revenues would just be sufficient to cover costs c. price is set equal to marginal revenue d. profit is set at the monopoly level e. revenues would be set equal to marginal cost