The effects of the negative supply shocks of 1973, 1979 and 2007 were different due to the ________
A) role played by rational expectations in the 1979 event
B) different sources of the supply shocks
C) credibility of the monetary authorities
D) different individuals who led the Federal Reserve System
C
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In the economic way of thinking, a tax on pollutants
A) unfairly places the burden of pollution reduction on the poor. B) is inefficient because it won't reduce pollution to zero. C) tries to alter relative money costs to reflect new decisions about who has which rights. D) cannot be labeled unfair as long as the tax revenues are used to fund public works projects.
The most significant international undertaking to prevent worsening of global warming is the
a. Montreal Protocol b. Rio Declaration c. Agenda 21 d. Kyoto Protocol e. None of the above
When the LM curve is vertical,
A) fiscal policy has no impact on equilibrium income. B) fiscal policy has no impact on the equilibrium interest rate. C) the economy is at full employment. D) monetary policy has no impact on equilibrium income.
Suppose sellers of liquor are required to send $5.00 to the government for every bottle of liquor they sell. Further, suppose this tax causes the price paid by buyers of liquor to rise by $3.00 per bottle. Which of the following statements is correct?
a. This tax causes the supply curve for liquor to shift upward by $5.00 at each quantity of liquor. b. The effective price received by sellers is $5.00 per bottle less than it was before the tax. c. Forty percent of the burden of the tax falls on buyers. d. All of the above are correct.