The "net export effect"
What will be an ideal response?
strengthens the stimulative effect of an expansionary monetary policy
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A tax is regressive if it takes a
A. Smaller fraction of dollars as income falls. B. Larger number of dollars as income falls. C. Smaller fraction of dollars as income rises. D. Larger number of dollars as income rises.
Refer to the above figure. Suppose the relevant aggregate demand curve is AD2. If the government wants to use discretionary fiscal policy to close the existing gap, it should
A) decrease taxes. B) increase taxes. C) increase the money supply. D) decrease government spending.
Using the graphical method to demonstrate the break-even point, which of the following statements is NOT true?
a. constant selling price per unit are represented by TR b. constant variable cost per unit is represented by TC c. variable costs increase at a constant rate of VC per unit of output d. below the point where TR and TC intersect, operating profits are realized e. all of these are true
The traditional view of competitive price-searcher markets holds that this type of market structure is inefficient because
a. there are too few firms to reach an efficient level of competition. b. barriers to entry are high. c. excessive advertising is encouraged. d. consumers are not allowed a sufficient amount of choice in which to express their individual preferences.