The best combination of inputs at one level of production may not be best at other levels.
Answer the following statement true (T) or false (F)
True
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If by purchasing more apples and fewer oranges you increase your total utility, then apples must be cheaper than oranges
Indicate whether the statement is true or false
Most economists - both liberals and conservatives - believe a balanced budget amendment is an ill-conceived idea.
A. True B. False C. Uncertain
According to the Laffer curve,
a. an increase in tax rates will always cause tax revenues to increase. b. when marginal tax rates are high, an increase in tax rates is likely to cause tax revenues to increase. c. when marginal taxes are low, an increase in tax rates will probably cause tax revenues to decline. d. when marginal tax rates are high, a reduction in tax rates may increase tax revenue.
For a fixed target real interest rate and target inflation rate, when inflation increases, the Fed ________ interest rates, hence ________ short-run equilibrium output.
A. decreases; decreasing B. increases; increasing C. increases; decreasing D. decreases; increasing