In Figure 1.9, the slope of the line between points K and L is
A. 0.60.
B. 0.75.
C. 0.80.
D. 1.25.
Answer: C
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Emma works full time during the day as an economist and faces a 90 percent marginal tax rate. If Emma were to get an offer to work a second job in the evenings doing consulting work for a local business for $10,000 per year, how much of this additional income would she be able to keep as net pay after taxes?
a. $1,000 b. $4,000 c. $6,000 d. $10,000
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Most economists today recognize that a short-run macro failure is possible.
Answer the following statement true (T) or false (F)
Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will increase. D) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.