U.S. labor productivity slowed during the 1970s because of
i. increasing government taxes and regulations on production.
ii. the necessity to cope with energy price increases.
iii. inflation, which shortened the horizon over which businesses made their borrowing plans.
A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
E
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Refer to Figure 9.1. Assume the economy is initially at point A. The initial change resulting from a recession caused by an increase in oil prices is best represented by which short-run equilibrium combination of price level and real GDP?
A) P2; Y2 B) P3; Y3 C) P2; Y3 D) P3; Y2
In short-run equilibrium, the perfectly competitive firm of Figure 9-3 will charge
a.
$5
b.
$7
c.
$8
d.
$10
e.
more than $10
An expansion is:
A. the high point of economic activity prior to a downturn. B. the low point of economic activity prior to a recovery. C. a period in which the economy is growing at a rate significantly below normal. D. a period in which the economy is growing at a rate significantly above normal.
The optimal treatment of a tax on a stock of wealth depends ____
a. on how the flow of income from that wealth is taxed b. on how the stock itself is taxed c. on whether or not there is an estate tax d. on the size of a stock