Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential
B. expansionary; lower; potential
C. expansionary; higher; potential
D. recessionary; lower; lower
Answer: A
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If 10 workers can produce 1,500 units of output and 11 workers can produce 1,600 units of output, then the average product of 11 workers is
A) 1,600 units. B) 1,500 units. C) 145.5 units. D) 100 units. E) 136.4 units.
The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?
A) Figure A B) Figure B C) Figure C D) Figure D
Refer to Table 4-4. If a minimum wage of $10.50 an hour is mandated, what is the quantity of labor supplied?
A) 400,000 B) 370,000 C) 340,000 D) 60,000
The federal law that prohibits, among other things, "unfair" competition and created the Federal Trade Commission is the:
A) Sherman Act of 1890. B) Clayton Act of 1914. C) Federal Trade Commission Act of 1914. D) Celler-Kefauver Act of 1950.