A $2.00 tax levied on the sellers of birdhouses will shift the supply curve
a. upward by exactly $2.00.
b. upward by less than $2.00.
c. downward by exactly $2.00.
d. downward by less than $2.00.
a
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
In the worst case scenario, the combined marginal tax rate of cash and in-kind programs combined could be equal to or greater than 100%
Indicate whether the statement is true or false
The bottom or low point of a recession just before an expansion begins is called...
What will be an ideal response?
Suppose there is an oil supply shock to the U.S. economy due to an embargo by major oil producing nations. According to the real business cycle theory, the supply shock will, other things being equal
A. cause real Gross Domestic Product (GDP) to decline both in the short run and in the long run. B. push the economy into an expansionary phase of the business cycle. C. cause economy-wide deflation. D. push real Gross Domestic Product (GDP) upward in the short run but downward in the long run.