When government increases a fixed tax, consumption schedule
A. shifts downward in a parallel manner.
B. shifts upward in a parallel manner.
C. becomes horizontal.
D. becomes vertical.
Answer: A
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Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket is $50
A) Violet's consumer surplus is $2. B) everyone will buy a ticket. C) consumer surplus will be maximized. D) no one will buy a ticket.
Economic profit is greater than or equal to accounting profit
a. True b. False Indicate whether the statement is true or false
Which is better for making comparisons over time, nominal GDP or real GDP, and why?
What will be an ideal response?
Monetarists say:
A. that, because P is stable, a change in M will change Q proportionately in the opposite direction. B. a change in the money supply will change aggregate demand and therefore the nominal GDP. C. a change in the money supply will change velocity, which in turn will change nominal GDP. D. a change in the money supply will change the interest rate, which will change investment spending and nominal GDP.