Suppose an economy is initially in long-run equilibrium, and it then experiences a supply shock in the form of exceptionally high energy prices. Which of these will be true in this economy?
What will be an ideal response?
The short-run aggregate supply curve and the long-run aggregate supply curve will shift leftward.
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If the marginal tax rate is less than the average tax rate as taxable income increases, the tax structure is
A) proportional. B) progressive. C) unfair. D) regressive.
Foreign exchange activity is dominated by the spot and swaps markets
Indicate whether the statement is true or false
A notable and unique feature of the colonial monetary system was
a. the use of minted silver coins. b. the circulation of commodities as money. c. the use of a widely accepted paper currency. d. the development of checking accounts issued by private commercial banks.
_____ has a causal effect on _____.
A. Income; unemployment B. Height; health C. Income; consumption D. Age; wage