If the government raises taxes ________
A) planned expenditures fall
B) equilibrium output falls
C) the IS curve shifts to the left
D) all of the above
E) none of the above
D
You might also like to view...
The change in cost that results from a one-unit increase in output is called the
A) average fixed cost. B) per-unit variable cost. C) per-unit total cost. D) marginal cost. E) average cost change.
________ can counteract a currency depreciation
A) Autonomous monetary policy tightening B) Purchase of international reserves C) Autonomous monetary policy easing D) Capital controls
Marginal rates of technical substitution (MRTS) represent
A) the optimum combinations of inputs. B) cost-minimizing combinations of inputs. C) the degree to which one input can replace another without output changing. D) All of the above
Suppose workers agreed to an indexed contract that increased their nominal wage by 4 percent plus 25 percent of any increase in the Consumer Price Index (CPI). If the CPI increased by 8 percent, what would be the change in the real wage?
a. 4 percent b. -2 percent c. 0 percent d. -4 percent e. 2 percent