Along a given ________ Phillips curve, a lower unemployment rate can be achieved only by paying the cost of a ________ inflation rate, and a lower inflation rate can be achieved only by paying the cost of a ________ unemployment rate
A) long-run; higher; lower
B) short-run; higher; lower
C) long-run; higher; higher
D) short-run; lower; higher
E) short-run; higher; higher
E
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If a buyer enjoys a consumer surplus of $25 when he purchases a good for $50, his willingness to pay for the good is ________
A) $2 B) $25 C) $50 D) $75
According to Joseph Schumpeter, the success of capitalism relies on:
a. continuous, small improvements to existing products. b. "gales of creative destruction." c. careful government direction of the manufacturing sector. d. a strong agricultural sector to support the manufacturing workforce.
Elaine's taxable income increases by $1 and her tax payment increases by $0.28. Her marginal tax rate is
A) 72 percent. B) 28 percent. C) 56 percent. D) There is not enough information to answer the question.
Refer to the accompanying figure. If the government imposed a price ceiling of $40, what would happen in this market?
A. There would be excess supply. B. The equilibrium quantity would fall. C. The price ceiling would have no effect. D. There would be excess demand.