Which of the following scenarios is not consistent with the Laffer curve?
a. The tax rate is very low, and tax revenue is very low.
b. The tax rate is very high, and tax revenue is very low.
c. The tax rate is very high, and tax revenue is very high.
d. The tax rate is moderate (between very high and very low), and tax revenue is relatively high.
c
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Empirical studies suggest that as real GDP per person increases the level of pollution:
A. decreases. B. remains constant. C. first increases then decreases. D. increases.
Income on the horizontal axis at which the vertical distance to the 45-degree line is greater than the vertical distance to the Ep line gives rise to ________-than-equal planned expenditures, and so we must be ________ the equilibrium level of income
. A) less, below B) less, above C) greater, below D) greater, above
If inflation and unemployment is rising at the same time, then this is most likely the result of a shift
a. downward in the aggregate demand schedule. b. upward in the aggregate demand schedule. c. downward in the aggregate supply schedule. d. upward in the aggregate supply schedule. e. none of the above can explain this
If you lend money at a nominal interest rate of 9 percent and the inflation rate is 1 percent, what real interest rate will you earn?
a. 3 percent b. 4 percent c. 8 percent d. 12 percent e. 15 percent