The Romer and Romer 2010 paper in the American Economic Review identified the major motivations for most significant legislated tax changes to be the following, except:
A. Adjustments made to match changes in government spending
B. Offsetting the monetary policy pursued by the Federal Reserve
C. Addressing an inherited budget deficit
D. Promoting long-run economic growth
B. Offsetting the monetary policy pursued by the Federal Reserve
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Suppose you are choosing between milk and cookies. If the opportunity cost of cookies in terms of milk increases, then the budget curve will
A. shift outward. B. rotate outward. C. rotate inward. D. shift inward.
A profit-maximizing firm will continue to expand output:
A. as long as the revenues from the production and sale of an additional unit exceeds the average cost of the unit. B. until the average cost of producing the good or service is at a minimum. C. as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit. D. until the marginal cost of producing a good or service is at a minimum.
A demand curve that is perfectly inelastic is
A. Downward-sloping. B. Upward-sloping. C. Horizontal. D. Vertical.
According to the classical model, investment
A) is a function of the nominal GDP. B) is inversely related to the interest rate. C) is a function of real GDP. D) is influenced by the money illusion at low income levels.