Figure 14.1 shows three aggregate demand curves. A shift from curve AD1 to curve AD0 could be caused by a(n):
A. increase in the money supply.
B. decrease in taxes.
C. increase in the price level.
D. decrease in government spending.
Answer: D
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As shown in the figure above, the rent ceiling ________ consumer surplus and ________ producer surplus
A) decreases; decreases B) decreases; increases C) increases; increases D) increases; decreases E) decreases; does not change
A needed reform in the U.S. income tax system that would reduce the costs of inflation is to
A) go back to taxing nominal wage and salary income. B) start taxing real wage and salary income. C) go back to taxing nominal interest income. D) tax real interest income.
What is another term for total surplus?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
Game theory suggests that acting in our own immediate best interest leads to the best possible outcome.
Answer the following statement true (T) or false (F)