A key factor that determines the geographic extent of a housing market is the distance that commuters are willing to travel from home to work. Which of the following events would NOT help to expand the geographic extent of the housing market in a metropolitan area?
A. Public transit fares decrease
B. Price of gasoline declines
C. State gasoline tax increases
D. none of the above
C. State gasoline tax increases
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According to this Application, one solution proposed to deal with the rising expenses of government entitlement programs is to raise taxes. An increase in taxes to help cover the rising expenses of entitlement programs would
A) increase aggregate demand, shifting the AD curve to the left. B) decrease aggregate demand, shifting the AD curve to the left. C) decrease aggregate demand, shifting the AD curve to the right. D) increase aggregate demand, shifting the AD curve to the right.
Employment protection laws make it harder for employees to lose their jobs and as a result, these laws reduce structural unemployment
Indicate whether the statement is true or false
An increase in the price level in the economies of U.S. trading partners will cause the aggregate expenditures function in the United States to
a. shift up. b. shift down. c. get flatter. d. get steeper.
A reason that the quantity theory of money has lost favor is that:
A. the federal funds market has been taken over by the Federal Reserve bank. B. the economy recently experienced an unexpected and deep recession. C. the quantity of money is better at predicting stock prices. D. money growth and inflation are no longer closely related.