If a tax cut of 3 percent causes the output supplied to increase by 6 percent, the absolute value of the tax elasticity of supply is
A. 6.0.
B. 0.5.
C. 18.0.
D. 2.0.
Answer: D
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Expansions of aggregate demand cause the economy to move along what is essentially a vertical aggregate supply curve when
A) wage increases catch up to inflation. B) higher prices can reduce interest rates no further. C) money supply growth rises to equal the rate of aggregate demand expansion. D) from a recession level of output, full employment is reached.
A change in supply cannot be caused by a change in:
a. resource prices. b. technology. c. prices of other goods. d. the price of the good itself. e. the number of suppliers.
If long-run average costs are falling, then the firm is experiencing diseconomies of scale
Indicate whether the statement is true or false
The steps to set up a new service company in QuickBooks with no employees are:
a. Easy Step Interview > Customer List > Vendor List > Item List b. Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List c. Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List d. Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts