If a binding price floor were placed in the market in the graph shown:
A. quantity demanded would exceed quantity supplied.
B. quantity supplied would exceed quantity demanded.
C. the demand curve would have to shift.
D. the supply curve would have to shift.
B. quantity supplied would exceed quantity demanded.
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What are the two types of taxes that working individuals pay on their earnings?
A) individual income tax and social insurance taxes B) individual income tax and sales tax C) payroll tax and sales tax D) property tax and payroll tax
The short-run Phillips curve implied when all changes in aggregate demand are caused by changes in the money supply is
a. upward sloping. b. downward sloping. c. horizontal. d. vertical. e. None of the above
Which of the following is a feature of farm policy present in the Food, Conservation, and Energy Act of 2008 that was not part of the Freedom to Farm Act of 1996?
A. Direct payments (direct subsidies) based on crops currently grown. B. Countercyclical payments. C. Farm buyouts by government. D. Acreage allotments (restrictions on planting).
Assume the economy is initially in equilibrium on AD1 and AS1. Which curve would have shifted, and in what direction would it have shifted, if a new equilibrium were to occur at an output level of $300 billion and a price level of P3 in Figure 8.3?
A. Aggregate demand would have shifted to the left. B. Aggregate supply would have shifted to the right. C. Aggregate demand would have shifted to the right. D. Aggregate supply would have shifted to the left.