The long-run aggregate supply curve would be represented by which line?
Refer to the graph above.
A. 1
B. 2
C. 3
D. 4
D. 4
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Economists usually maintain that policy designed to increase aggregate demand cannot have any long-run real effects. What lies behind this argument?
What will be an ideal response?
A shift in a curve represents a change in:
A. the variable on the horizontal axis. B. the variable on the vertical axis. C. a third variable that is not on either axis. D. any variable that is relevant to the relationship being graphed.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
A tax bracket is
A) the percent of taxable income paid in taxes at a specific income bracket. B) the type of tax structure for which a range of taxes applies. C) the income range within which a particular tax rate applies. D) the range, from the high to the low tax rate, of a particular type of tax.