The 10% tax surcharge in 1968 was only for 1 year, and people deemed the tax was temporary. As a result, the tax:
A. did not have much effect on people's consumption.
B. resulted in a large drop in people's consumption.
C. resulted in a large increase in people's consumption.
D. caused people's consumption to become zero.
Answer: A
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In the classical model where aggregate supply is vertical with respect to the price level, an increase (shift) in aggregate demand will yield
A. a relatively large increase in output. B. an equal change in output. C. a relatively large increase in the price level. D. a relatively small change in the price level.
Under the European System of Central Banks, the National Central Banks have the same role as the ________ of the Federal Reserve System
A) Board of Governors B) Federal Open Market Committee C) Federal Reserve Banks D) Federal Advisory Council
In bilateral monopoly, price and output are determined by the intersection of demand and supply curves.
Answer the following statement true (T) or false (F)
Rank these three items in terms of the elasticity of the demand for them at any given price, from most elastic to least elastic: hot beverages, coffee and Peet's Coffee
A) hot beverages, coffee, Peet's Coffee B) Peet's Coffee, coffee, hot beverages C) coffee, Peet's Coffee, hot beverages D) coffee, hot beverages, Peet's Coffee