According to the Taylor rule, the Federal Reserve lowers the real interest rate as the output gap ________ or the inflation rate ________.
A. decreases; increases
B. increases; increases
C. increases; decreases
D. decreases; decreases
Answer: C
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If the sellers of a good are taxed for each unit sold, ________
A) the price that buyers need to pay falls B) a larger quantity of the good is sold C) the price that sellers receive increases D) a smaller quantity of the good is sold
When a farmer uses someone else's land in exchange for a percentage of the crop, this is called
a. rental contract b. labor contract c. sharecropping d. tenancy e. none of the above
What is the national income identity for an open economy?
What will be an ideal response?
The average cost curve
a. is the vertical summation of the AFC and the AVC curves. b. lies below the AVC curve. c. lies below the AFC curve. d. is the vertical summation of the MC and AVC curves.