When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):
A. decrease in the demand for gasoline.
B. increase in the supply of gasoline.
C. increase in the demand for gasoline.
D. decrease in the supply of gasoline.
Answer: B
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The equivalent variation is always less than the consumer's income
Indicate whether the statement is true or false
The personal income tax varies as GDP changes
a. True b. False Indicate whether the statement is true or false
Other things equal, one would predict that market wages would be relatively high when
a. the supply of labor is high. b. the demand for labor is low. c. the supply of labor is low. d. Both (a.) and (b.) are correct
In the open-economy macroeconomic model, the market for loanable funds identity can be written as
a. S = NCO - I b. S = NCO c. S = I - NCO d. S = I + NCO