A tax of $1,000 per person would make the federal income tax more _____.
Fill in the blank(s) with the appropriate word(s).
regressive
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
An economy of 25 million people has twenty percent of them engaged in research and development, where their productivity is 0.0056. The economy is on a balanced growth path, when suddenly a wave of immigration raises the population to 27 million
Assume that the new workers are immediately "on the job," and that the fraction engaged in R&D remains twenty percent. For the one period that begins with this population increase, the growth rate of output per person is ________. [Refer to the instruction above.] A) 4.3% B) 1.8% C) 3% D) 8%
The demand curve a monopolist faces:
a. is more elastic than a perfectly competitive firm's demand curve. b. is the market demand curve. c. is as elastic as a perfectly competitive firm's demand curve. d. is not affected by the prices of complements. e. will not shift in response to a change in consumer tastes.
What is the law of comparative advantage, and why is it important in international trade?