In the 2000s, government budget deficits became larger as a percent of GDP
a. True
b. False
A
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Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold
A) the deadweight loss is greater under the supply curve S0. B) the deadweight loss is greater under the supply curve S1. C) the deadweight loss is identical under either supply curve. D) there is no deadweight loss since revenue raised is used to fund government projects.
Suppose the income-consumption curve for goods X and Y is upward sloping. If the price of good Y increases and the income-consumption curve rotates in clockwise fashion, then we know that:
A) X and Y are complements. B) X and Y are both inferior goods. C) X and Y are substitutes . D) Y is an inferior good.
A rise in confidence is associated with higher consumption and investment demand, and leads to:
a. a downward shift in the AD curve. b. an inward shift in the AD curve. c. an outward shift in the AD curve. d. an upward shift in the AD curve.
If Japanese tourists visit Yellowstone Park, what is the effect in the foreign exchange market?
a. It will increase demand for Japanese yen. b. It will decrease demand for Japanese yen. c. It will increase supply of Japanese yen. d. It will decrease supply of Japanese yen.