In the United States, the temporary tax surcharge of 1968
A) actually increased consumer spending.
B) decreased consumer spending by more than was originally estimated.
C) had no impact on consumer spending.
D) decreased consumer spending by less than was originally estimated.
D
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Economists generally favor the use of tradable emission allowances to reduce pollution. However, the use of these allowances has been criticized by some environmentalists. Which of the following describes this criticism?
A) Some environmentalists believe that Pigovian taxes are a more efficient way to reduce pollution. B) Some environmentalists oppose allowances on legal grounds; they believe the use of allowances is unconstitutional. C) Some environmentalists believe that the price of allowances is often too high for consumers to afford. D) Some environmentalists believe the allowances give firms a license to pollute.
If a firm produces zero units of output,
a. total revenue equals zero b. total cost equals zero c. total cost will equal explicit costs d. profit will equal zero e. the firm will earn only a normal profit
Refer to the table shown. The firm would definitely not hire:Number of workersTotal output142103184285356417458489501049
A. 9 workers. B. 5 workers. C. 10 workers. D. 7 workers.