If the marginal tax on labor income rises then the tax receipts of the government:
a. rise.
b. stay the say.
c. fall.
d. may rise, fall or stay the same.
Ans: d. may rise, fall or stay the same.
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In 1971, a bank worker could process 265 checks in 1 hour. Currently, computers with built-in reader-sorter processing capacity have pushed that number above 100,000 checks per hour. Economists describe this type of activity as
a. exploitation of labor. b. an increase in labor productivity. c. speed-up. d. comparative advantage. e. mutual gains from voluntary trade.
Which of the following was not a peak period for the US debt/income ratio?
a) the Civil War b) World War I c) World War II d) The War on Poverty e) The end of the Cold War
Along a short-run Phillips curve, the
A) long-run cost of lower inflation is higher unemployment. B) short-run cost of lower unemployment is higher inflation. C) short-run cost of lower inflation is higher interest rates. D) short-run cost of higher inflation is a higher real interest rate. E) short-run benefit of lower unemployment is lower inflation.
If strong aggregate demand is pushing the economy beyond potential real GDP, which of the following must be true?
A) Expansionary monetary policies will push the economy back to the long-run Phillips curve. B) The economy is at an equilibrium that is not on the long-run Phillips curve. C) The economy is at an equilibrium that is on the long-run aggregate supply curve. D) The economy is at an equilibrium that is on the long-run Phillips curve.