Economies of scale and limited demand can form a natural barrier to entry that can create a natural oligopoly
Indicate whether the statement is true or false
TRUE
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Employing a fixed-weight index like the Consumer Price Index to adjust a person's salary in response to inflation will overcompensate this person because doing so will allow this person to
A) buy the same bundle of goods as he did before the inflation. B) achieve a higher level of utility than he did before the inflation. C) achieve the same level of utility as before the inflation. D) buy more of all goods.
The U.S. income tax system is progressive
a. True b. False Indicate whether the statement is true or false
Figure 14-5
In , AD1 and SRAS1 indicate an economy initially operating at full-employment output level, Y1. The short-run impact of the Fed unexpectedly shifting to a more restrictive monetary policy will be
a.
a decrease in aggregate demand to AD2 and a decrease in real output to Y2.
b.
a decrease in aggregate demand to AD2 but real output would remain at Y1.
c.
a decrease in aggregate demand to AD2 and an increase in short-run aggregate supply to SRAS2, causing the price level to fall to P3 and real output to remain unchanged at Y1.
d.
no change; AD and SRAS will stay at AD1 and SRAS1.
Which of the following was a problem with using the conventional press measure of income inequality during 1971 - 1998?
A. There was a rapid increase in the income-tax filings during the period between 1971 and 1998. B. There was a rapid increase in the working-class population during the period between 1971 and 1998. C. There was a rapid decrease in the income-tax filings during the period between 1971 and 1998. D. There was a rapid decrease in the working-class population during the period between 1971 and 1998.