Beneficial externalities would be removed if the recipients of the benefit paid the producer of the externality
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Suppose that you are earning the maximum amount of money within the 28% tax bracket. If you receive a $1000 raise next year this will place you in the 33% tax bracket. Calculate your tax burden and the amount of increase in your "take-home" pay
What will be an ideal response?
A rational individual would make charitable contributions only if such contributions receive favorable tax treatment
a. True b. False
Assume that an economy's real GDP multiplier is 4 . If this economy is in equilibrium at $2,000 billion, then which one of the following actions will bring it to a full employment equilibrium of $1,500 billion?
a. $500 billion spending cut. b. $500 billion spending increase. c. $125 billion spending cut. d. $125 billion spending increase. e. $2,000 billion spending cut.