If government increases taxes by the same amount it increases government spending, there will be no effect on aggregate demand: the increase in government spending is offset by an equal decrease in consumption spending by households
Indicate whether the statement is true or false
FALSE
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If Billy's reservation price on a snowboard is $250, how many snowboards would he buy if the market price of snowboards is $500?
A. 0 B. 1 C. 2 D. The amount of snowboards purchased would depend on Billy's income.
The evidence from wage data allows us to conclude that nonsupervisory workers were economically worse off in 2008 than 1975
a. This conclusion is correct because such workers have been suffering form increasing unemployment since 1975 b. This conclusion is correct because such workers have been receiving an ever-decreasing share of their income in nonwage benefits. c. This conclusion is correct because nominal wages for such workers have stayed constant since 1975. d. This conclusion is correct because nominal wages for such workers have fallen since 1975. e. This is a mistaken conclusion because the CPI overstates inflation.
When there is a positive return to monopsony power, this means
a. many employers share economic profits from exploiting workers b. workers have been successful in forming unions c. labor markets are perfectly competitive d. workers are paid less than in a competitive labor market e. wages are equal to the marginal revenue product of labor
Corporate profits
a. rise during inflation causing corporate taxes collected to rise b. rise during inflation causing corporate taxes collected to fall c. fall during inflation causing corporate taxes collected to rise d. fall during inflation causing corporate taxes collected to fall e. and corporate taxes are unrelated so that it is impossible to tell what happens to corporate taxes when corporate profits change