The open-economy macroeconomic model examines the determination of
a. the output growth rate and the real interest rate.
b. unemployment and the exchange rate.
c. the output growth rate and the inflation rate.
d. the trade balance and the exchange rate.
d
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The actual incidence (or burden) of a tax refers to
a. the governmental agency responsible for collecting the tax. b. who actually bears the burden of a tax once changes in market prices are taken into account. c. the degree of progressiveness in the rate structure of the tax. d. who the tax is legally or statutorily imposed on.
Workers’ reluctance to take nominal pay cuts offers a feasible explanation of why the Phillips Curve relation breaks down when there is deflation.
a. true b. false
The real costs of inflation to society include:
A. lost purchasing power of income. B. an increase in the general level of prices. C. interference with long-term planning. D. higher relative prices.
Which of the following is NOT consistent with the law of diminishing marginal utility?
A. A symphony has free throat lozenges in their lobby. B. A student's enjoyment of a movie increases the more she watches it. C. A student selects to eat at an all-you-can-eat restaurant rather than at a restaurant that charges for refills. D. Newspaper vending machines are not as secure as soft drink machines.