The formula for the tax multiplier is
A) (1 + b) / (1 - b). B) 1 / (1 - b). C) -b / (1 - b). D) b / (1 - b).
C
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If the price of beef jerky rises, the substitution effect due to the price change will cause
A) an increase in the demand for hot sauce, a complement for beef jerky. B) a decrease in the quantity of beef jerky demanded. C) an increase in the quantity of beef jerky demanded. D) an increase in the demand for beef jerky.
The assumption that wages adjust more slowly than prices implies that the Phillips Curve
A) exists in the short-run. B) exists in the long-run. C) is vertical. D) does not exist.
Figure 29-1
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In Figure 29-1, which panel shows the effect of a Fed open-market sale on the interest rate?
A. Panel (A) B. Panel (B) C. Panel (C) D. Panel (D)
To what factors do demographers attribute the decline in birthrates? How has the economic view of children changed?
What will be an ideal response?