Answer the following statement(s) true (T) or false (F)
1.The multiplier effect causes the ultimate increase in total purchases to be greater than the initial increase.
2.The marginal propensity to consume is the fraction of additional disposable income that a household consumes rather than saves.
3.The 2008–2009 recession was the mildest recession since the Great Depression.
4.Since the 1930s, economic stabilization policies have focused primarily on the supply side of the economy.
5.Economist Arthur Laffer invented a graphic demonstrating the effect of tax rates on government revenue.
1.true
2.true
3.false
4.false
5.true
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Use the following graph to answer the next question.
The relationship between the average tax rate and the tax base in a proportional tax would be represented by
A. curve A. B. curve B. C. curve C. D. none of the curves.
Refer to Figure 4-8. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of the deadweight loss after the imposition of the price floor?
A) $50,000 B) $125,000 C) $175,000 D) $260,000
What factors determine the demand for money in the Baumol-Tobin analysis of transactions demand for money? How does a change in each factor affect the quantity of money demanded?
What will be an ideal response?
In 2002, the United States contained around _____ governmental units at all levels
a. ninety thousand b. twelve thousand c. fifty d. five hundred and thirty-five