When a recessionary gap exists, actual output ________ potential output and the rate of inflation will tend to ________.
A. is less than; decrease
B. is less than; increase
C. exceeds; increase
D. exceeds; decrease
Answer: A
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Exemptions and deductions are used
A) to determine what items are subject to sales taxes. B) by taxpayers to reduce the amount of income subject to tax. C) to add to taxes that must be paid. D) to determine the type of tax structure.
Everything else equal, the AC curve will shift when
a. the price of the product rises. b. technical change raises the MPP of one input. c. output is increased. d. increasing returns to scale are present.
A tax for which the average tax rate rises with income is defined as a
a. regressive tax. b. proportional tax. c. neutral tax. d. progressive tax.
In a BLS study, the average adult spends __________ per day on unpaid work.
A. 2.8 hours B. 5 hours C. 1.5 hours D. 0 hours