In the aggregate demand and aggregate supply model, the point where the aggregate demand curve crosses the long run aggregate supply curve, and the expected price level equals the actual price level, is known as what?
Long run equilibrium
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Those who favor passive policy making do so because they conclude that
A) price and wage flexibility is a common and speedy occurrence. B) there is a stable trade-off between inflation and unemployment in the short run. C) price and wage flexibility is an uncommon occurrence. D) pure competition is not typical in most markets.
The standard IS curve is adjusted in new Keynesian theory to account for ________
A) the forward-looking behavior of households and firms B) the difference between real and nominal variables C) changes in GDP, or Gross Domestic Product D) the impact of a rising national debt
According to the graph shown, if this economy were to open to trade, domestic prices would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. remain $14 for domestically produced goods, and be $10 for those units imported.
B. drop to $10 for all units.
C. remain $14, with more units sold overall.
D. increase to $17 for all units sold.
Annual incomes of James, Jack, and Stanley are $30,000 . $50,000 . and $80,000 and their tax rates are 10%, 20%, and 30% respectively. Which tax structure is this an example of?
a. Proportional tax b. Progressive tax c. Regressive tax d. Digressive tax