Sue earns income of $80,000 per year. Her average tax rate is 30 percent. Sue paid 20 percent in taxes on the first $30,000 she earned. What was the marginal tax rate on the rest of her income?
a. 20 percent
b. 24 percent
c. 30 percent
d. 36 percent
d
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The root cause of the hyperinflation that plagued Zimbabwe in the 2000s is ________
A) printing of too much money by the central bank B) government expenditures greatly above revenues C) outlawing of price increases on many commodities D) allowing the use of foreign currencies E) the issuance of a $100 billion bank note
We use the term expansionary fiscal policy when the overall effect of decisions about taxation and spending is to:
A. increase aggregate demand. B. decrease aggregate demand. C. increase aggregate supply. D. decrease aggregate supply.
Which of the following would shift the long-run aggregate supply curve right?
a. both an increase in the capital stock and an increase in the price level b. an increase in the capital stock, but not an increase in the price level c. an increase in the money supply, but not an increase in the capital stock d. neither an increase in the money supply nor an increase in the capital stock
If a consumer is choosing the optimal combinations of two goods X and Y, and then the price of good Y decreases, this causes:
A. MU/P of good X to increase, so the consumer now must buy more X to find a new optimal combination. B. demand for good X to increase. C. MU/P of good Y to increase, so the consumer now must buy more Y to find a new optimal combination. D. MU/P of good Y to decrease, so the consumer now must buy more Y to find a new optimal combination.