The impact of a change in taxes on income is likely to be less than the effect resulting from a change in government spending since ________
A) the federal government typically operates in a deficit situation
B) exports and imports can only assume positive values, but net exports can be positive or negative
C) changes in the supply of money will be necessary if government spending is increased
D) changes in taxes exert an indirect impact on total spending through changes in consumption
D
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The assumed goal of the firms that operate in each of the four market structures discussed in the text is to maximize:
A) sales. B) revenue. C) profits. D) price.
A change in a third variable not on either axis of a graph is illustrated with a:
a. horizontal or vertical line. b. movement along a curve. c. shift of a curve. d. point of intersection.
If a good is inferior, then whenever the compensated demand curve intersects the uncompensated demand curve:
A. the uncompensated demand curve is steeper than the compensated demand curve. B. the compensated demand curve is steeper than the uncompensated demand curve. C. both curves will have the same slope. D. the compensated demand curve will be upward-sloping.
People had been expecting the price level to be 140 but it turns out to be 138 . Johnson Family Restaurants increases the number of workers it employs. What could explain this?
a. both sticky price theory and sticky wage theory b. sticky price theory but not sticky wage theory c. sticky wage theory but not sticky price theory d. neither sticky wage theory nor sticky price theory