If the government increases the income tax rate, consumers have:
A. less to spend and will reduce their consumption.
B. more to spend and will increase their consumption.
C. more to spend and will reduce their consumption.
D. less to spend and will increase their consumption.
Answer: A
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A) recession; the price level rises B) recession; real GDP decreases C) equilibrium; real GDP decreases D) recession; nominal GDP increases E) expansion; real GDP decreases
A natural monopoly is one that deliberately erects entry barriers.
Answer the following statement true (T) or false (F)
All of the following are ways a government might protect monopoly rights except:
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