An upward shift in the Fed's policy reaction function corresponds to a ________ the aggregate demand curve and an increase in exogenous spending corresponds to a ________ the aggregate demand curve.
A. movement up; shift right of
B. shift right of; shift left of
C. shift left of; movement up
D. shift left of; shift right of
Answer: D
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The burden of a per-unit tax will fall disproportionately on consumers when the supply curve is relatively more elastic than the demand curve.
Answer the following statement true (T) or false (F)
If the demand for steak increases as income increases, then steak is a(n):
A. normal good. B. inferior good. C. substitute good. D. complementary good.
An increase in the minimum wage will have a large effect on the number of workers employed in minimum wage occupations if:
A. demand for workers is elastic. B. demand for workers is inelastic. C. supply of workers is elastic. D. supply of workers is inelastic.
The 2001 and 2003 tax cuts of the George W. Bush administration each had provisions to
A. lower the earned income tax credit. B. raise tax rates at the upper end. C. raise tax rates at the lower end. D. increase (or speed up the already scheduled increase in) the child tax credit.