Governments use microeconomic models to
A) predict the impact of a policy before adopting it.
B) consider the tradeoff between clean air and a high level of GDP.
C) determine the tradeoff between equity and efficiency.
D) All of the above.
D
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When a tax is regressive, as a person's income rises, the tax rate:
a. stays the same. b. decreases. c. increases. d. increase and then decreases. e. decreases and then increases.
During George W. Bush's presidency
A. the job market was quite robust. B. The United States' federal budget deficit hit a record high. C. the federal budget surpluses in the last years of the Clinton presidency continued. D. we experienced a very high inflation rate.
If consumer confidence rises because of strong job growth in an economy, what is likely to happen to the rate of savings?
a) The savings rate will likely rise. b) The savings rate will likely fall. c) The savings rate will likely fall to zero. d) The savings rate will turn negative.
If Real GDP is less than potential Real GDP, then the (actual) unemployment rate is
A. less than the natural unemployment rate. B. equal to the natural unemployment rate. C. greater than the natural unemployment rate. D. less than or greater than the natural unemployment rate, but we cannot determine which one.