If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money supply constant, then the two policies together would generally lead to ______ income and a ______ interest rate.
Fill in the blank(s) with the appropriate word(s).
lower; lower
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In order to bring GDP and national income into accord,
a. add indirect business taxes to national income and we have GDP b. add depreciation of capital and indirect business taxes to GDP and we have national income c. subtract depreciation of capital from GDP and we have national income d. subtract depreciation of capital and proprietor's income from GDP and we have national income e. subtract depreciation of capital and indirect business taxes from GDP and we have national income
A vertical line always has a slope of one
a. True b. False Indicate whether the statement is true or false
Which of the following practices would indicate that an employer is trying to overcome a moral-hazard problem with his employees?
a. The employer pays his workers wages that are unusually high for the industry and region. b. The employer pays his employees year-end bonuses depending to how well the business does and his observations of the employees' efforts. c. The employer has voluntarily removed video cameras from the factory floor. d. Both A and B are correct.
In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will
A) increase. B) decrease. C) become negative. D) not change.