For each $1 of a tax cut, economists expect consumption to
a. decrease by $1.
b. decrease by less than $1.
c. increase by less than $1.
d. increase by $1.
c
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Growth in aggregate demand will
A) cause the short-run Phillips curve to shift to the left. B) increase unemployment. C) move the economy to a higher point on the short-run Phillips curve. D) cause deflation.
Suppose you need an estimate of future inflation (to decide, for example, whether a particular security is a good investment). How might you formulate a rational expectation?
What will be an ideal response?
Which of the following offers the best example of an external cost?
a. The opportunity cost of money that an entrepreneur has invested in her business b. The payments to owners of labor resources and coal inputs used by a coal-burning electric generating facility c. The price paid by households for electricity service, including both the electricity itself and the cost of transporting the electricity through power lines d. The harms to private property, open-access resources, and human health caused by pollution byproducts of electricity production
Antidumping duties are a type of:
a. tariff. b. quota. c. export. d. trade agreement.