Refer to the information provided in Figure 27.4 below to answer the question(s) that follow.
Figure 27.4Refer to Figure 27.4. If the economy is currently at the intersection of AS and AD, stagflation would be caused by
A. an increase in AD.
B. a decrease in AD.
C. a decrease in AS.
D. an increase in AS.
Answer: C
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The share of corporate tax in total federal revenues
A) has declined over the past few decades to a relatively low level. B) is larger than the other components of federal revenue. C) has grown significantly in each of the past 10 years. D) is the smallest of all the components of federal tax revenue.
Suppose that over the past year, the real interest rate was 6 percent and the inflation rate was -2 percent. It follows that
a. the dollar value of savings increased at 4 percent, and the purchasing power of savings increased at 6 percent. b. the dollar value of savings increased at 4 percent, and the purchasing power of savings increased at 8 percent. c. the dollar value of savings increased at 8 percent, and the purchasing power of savings increased at 4 percent. d. the dollar value of savings increased at 8 percent, and the purchasing power of savings increased at 6 percent.
The central banking system of the United States:
a. Federal Reserve b. National Bank of Washington D.C. c. Dow Jones Stock Exchange d. NASDAQ Exchange
Suppose a consumer is willing to pay $20 for one unit of good X, $10 for a second, and $5 for a third, and the market price is $4. The consumer surplus is:
A. $16. B. $6. C. $1. D. $23.