If, in response to a decrease in the price of grapes, the quantity of grapes demanded increases, then economists would describe this as
A) an increase in demand.
B) an increase in quantity demanded.
C) a change in consumer income.
D) an increase in consumers' taste for grapes.
Answer: B
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The earned income tax credit (or EITC):
A. reduces the sales tax paid by low-income workers. B. provides tax credits to firms who hire low-income workers. C. gives low-income workers credits on their federal income taxes. D. reduces the tax rate on investment income.
Samuelson and Solow reasoned that when aggregate demand was low, unemployment was
a. high, so there was upward pressure on wages and prices. b. high, so there was downward pressure on wages and prices. c. low, so there was upward pressure on wages and prices. d. low, so there was downward pressure on wages and prices.
Lack of the provision of public goods is considered a ______________ ______________.
Fill in the blank(s) with the appropriate word(s).
In a classical model
A. equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand. B. equilibrium real GDP is determined by both aggregate supply and aggregate demand. C. equilibrium real GDP is determined by the government. D. equilibrium real GDP is supply determined.