Because the consumer price index reflects the goods and services bought by consumers better than the GDP deflator does, it is the more common gauge of inflation
a. True
b. False
Indicate whether the statement is true or false
True
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Monetary policy credibility has the benefit of ________
A) stabilizing inflation in the short run when faced with positive demand shocks B) stabilizing economic activity in the short run when faced with positive demand shocks C) transmitting the effect of aggregate demand shocks onto short-run aggregate supply D) enhancing the job opportunities of Federal Reserve officials after they leave the central bank
Taxes that are enacted to mitigate the effects of negative externalities are sometimes called
a. control taxes. b. command levies. c. Pigovian taxes. d. Marshallian taxes.
During a presidential campaign, the candidates from each party typically describe their plans to maintain or change federal taxes on personal and business income. Are these policy statements generally positive or normative in nature?
A. Both positive and normative B. Positive C. Normative D. Neither positive or normative
If a chemical factory causes noxious fumes to be emitted in the neighborhood, a third party would be:
A. workers at the factory. B. owners of the factory. C. chemical customers. D. local homeowners.