If the budget line rotates, then we know that
A. the consumer was not maximizing their utility.
B. their has been a change in the consumer's tastes.
C. income has changed.
D. the price of one of the goods had changed.
Answer: D
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The Tax Reform Act of 1986 was concerned with _____
a. fiscal stabilization b. macroeconomic policy c. equity considerations d. efficiency considerations
In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500 . Maconia had 5% growth in real GDP per person. In 2012 it had a population of 8,400 . To the nearest dollar what was real GDP in Maconia in 2012?
a. 216,815 b. 221,025 c. 226,416 d. None of the above is correct.
Suppose there is new fertilizer technology which allows avocados to be grown using less water, how might this affect the market for avocados?
A. Price decreases and quantity increases B. Price increases and quantity increases C. Price decreases and quantity decreases D. Price increases and quantity decreases
Structures in the economy increase aggregate demand when the economy is in recession and decrease aggregate demand when the economy is inflationary are known as:
A. tax transfers. B. automatic stabilizers. C. accelerators. D. depreciation.