If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
What will be an ideal response?
Make it more difficult for the Fed to properly time changes in monetary policy.
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Teenagers drink more soda than other age groups. If the number of teenagers increases, everything else remaining the same,
A) market demand for soda does not change. B) market demand for soda increases. C) there is a movement along the market demand curve for soda. D) market demand for soda decreases. E) None of the above answers is correct because the effect on the demand depends whether the supply curve shifts rightward, leftward, or not at all.
If the government wants to raise tax revenue and shift most of the tax burden to the sellers it would impose a tax on a good with a:
a. flat (elastic) demand curve and a steep (inelastic) supply curve. b. steep (inelastic) demand curve and a flat (elastic) supply curve. c. steep (inelastic) demand curve and steep (inelastic) demand curve. d. flat (elastic) demand curve and a flat (elastic) supply curve.
Empirical evidence indicates that imposing taxes on polluting emissions by firms
A. has no effect on the amount of pollution emitted. B. does not give the government leeway to regulate more dangerous emissions differently than less dangerous emissions. C. does reduce the amount of pollution emitted. D. discourages firms from investing in new methods of pollution abatement.
If Dave and Jesse are the only two fishermen in town and neither is bothered by the other's fishing, the lake they fish in is not a common resource
a. True b. False Indicate whether the statement is true or false