If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would
a. decrease by less than $500.
b. decrease by exactly $500.
c. decrease by more than $500.
d. increase by an indeterminate amount.
a
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Which statement is true?
A. Subsidy payments to farmers were almost completely phased out in 2007. B. The so-called new economy of the 1990s was neither new, nor very different from the economy of the previous 25 years. C. Until the time of the Great Depression, the United States was primarily an agricultural nation. D. There were no recessions during the presidency of Bill Clinton (January 1993-January 2000).
The FE line
A) is horizontal. B) is vertical. C) slopes downward. D) slopes upward.
Real business cycle theory states that the most important cause of business cycles is
A) shocks to the money supply. B) interest rate shocks. C) Federal Reserve policy decisions. D) shocks to tastes and technology.
Keynesian economics refers to the perspective that the business cycle represents
A) equilibrium. B) disequilibrium. C) long-run macroeconomic fluctuations. D) short-run macroeconomic stability.