Modern monetarists believe that
A. the market system is inherently self-stabilizing.
B. the market system may be in equilibrium below full employment.
C. in the long run, increases in the money supply translate into proportionally higher levels of real income.
D. increases in government expenditures will drive a depressed economy rapidly toward full employment.
A. the market system is inherently self-stabilizing.
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A price ceiling is a government regulation that makes it illegal to charge a price
A) below the equilibrium price. B) above the equilibrium price. C) for a good or service. D) above some specified level. E) below some specified level.
Refer to Figure 7-3. Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound. What is the quantity of peanuts demanded by domestic consumers in the absence of a quota?
A) 10 million pounds B) 28 million pounds C) 30 million pounds D) 40 million pounds
Refer to Figure 28-2. Suppose the Fed used contractionary policy to push short-run equilibrium to point C. If the short-run equilibrium remained at point C long enough
A) the short-run Phillips curve would shift up. B) the economy would stay at point C in the long run. C) the economy would move back to point A. D) the short-run Phillips curve would shift down.
Compute the tax rates for the three taxpayers shown in Table 33.1. Then use the table to answer the indicated question. TaxpayerIncome (Dollars)Taxable Income (Dollars)Taxes Paid (Dollars)Effective Tax Rate(Percent)Nominal Tax Rate(Percent)1$200,000$100,000$6,000________%________%2100,00080,0008,000________%________%360,00048,00012,000________%________%In Table 33.1, the nominal tax rate for taxpayer 3 is
A. 20.0 percent. B. 5.0 percent. C. 12.5 percent. D. 25.0 percent.