The aggregate demand curve shows the:
A. Inverse relationship between the price level and the quantity of real GDP purchased
B. Direct relationship between the price level and the quantity of real GDP produced
C. Inverse relationship between interest rates and the quantity of real GDP produced
D. Direct relationship between real-balances and the quantity of real GDP purchased
A. Inverse relationship between the price level and the quantity of real GDP purchased
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The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for tea after severe weather destroys a large portion of the coffee crop?
A) Graph A B) Graph B C) Graph C D) Graph D
When income is $15,000, the amount of income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The average income tax rate when a person earns $15,000 is
A) 75 percent. B) 15 percent. C) 13.3 percent. D) 20 percent.
The Prisoner's Dilemma involves two spies who are held in separate soundproof rooms. But even if the two spies could communicate, what makes it difficult for them to achieve the cooperative solution (both not confessing)?
a. The problem is their lack of information. b. The problem is that it is a nonzero sum game. c. The problem is that both spies have incentives to double cross each other. d. The problem is that all the outcomes are not particularly good for either player.
A tax on all forms of income will
a. lower the effective rate of interest on savings. b. have no effect on savings. c. enhance social welfare because the benefits will outweigh the costs. d. enhance the incentives to save.