Supply side inflation can be caused by
A) a continual increase in aggregate supply while aggregate demand remains unchanged.
B) a continual decrease in aggregate supply while aggregate demand remains unchanged.
C) a continual decrease in aggregate supply while aggregate demand has significant decreases.
D) a continual increase in aggregate demand while aggregate supply remains unchanged.
B
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Keynesian models involve considerable efforts to explain the determinants of
A) the money supply. B) aggregate supply. C) liquidity preference. D) the demand deposit multiplier.
Labor productivity in the United States was 5.4 times higher in the United States than in China in 2010. A key reason that labor productivity is higher in the United States is because the United States
A) has a higher growth rate, based on GDP per capita, than China. B) has a higher life expectancy and higher birth rate than China. C) devotes more resources than China to developing new technology and accumulating human capital. D) devotes more resources than China to developing export markets to boost its real GDP and income.
The above figure shows the demand and supply curves in the market for milk. Currently the market is in equilibrium. If the government establishes a $4 per gallon price support, estimate the change in p, Q, and social welfare
What will be an ideal response?
A tax whose burden, expressed as a percentage of income, falls as income increases is a
A. regressive tax. B. benefits-received tax. C. proportional tax. D. progressive tax.