When taxes are a function of income as opposed to a lump sum amount, the AE function becomes flatter.
Answer the following statement true (T) or false (F)
True
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If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is
A) a straight line. B) bowed outward. C) upward sloping. D) any of the above
The basic way that one piece of land differs from another is in its _________________.
Fill in the blank(s) with the appropriate word(s).
Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, if government held the price at $3,
A. There would be a shortage. B. The government would be setting an effective price floor. C. The shortage would be the same as the quantity demanded. D. The market would be in equilibrium.
Suppose the price level is fixed, the MPC is .5, and the GDP gap is a negative $100 billion. To achieve full-employment output (exactly), government should:
A. increase government expenditures by $100 billion. B. increase government expenditures by $50 billion. C. reduce taxes by $50 billion. D. reduce taxes by $200 billion.