A tax
a. lowers the price buyers pay and raises the price sellers receive.
b. raises the price buyers pay and lowers the price sellers receive.
c. places a wedge between the price buyers pay and the price sellers receive.
d. Both b) and c) are correct.
d
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Which has a larger effect on aggregate demand: an increase in government expenditure or an equal sized decrease in taxes? Explain your answer
What will be an ideal response?
Suppose an economy has the following characteristics: 100 people in the noninstitutional population; 40 people employed; 50 people not in the labor force. How many people are in the economy's labor force?
A) 40 B) 50 C) 90 D) 100
Refer to Scenario 5.8. Without additional information, Icarus Airlines would
A) lease only the one airplane it is sure it can use. B) lease 2 airplanes in order to guarantee it avoids the worst outcome, $10 million. C) lease 3 airplanes because $140 million is greater than $90 million. D) lease 3 airplanes because $75 million is greater than $60 million. E) lease 3 airplanes because heavy tourism is more likely than light tourism.
Since the early 1960s, the percentage of Americans who are obese;
a. has decreases due to the increased emphasis on physical fitness b. has decreased due to the increased emphasis of healthy diets c. has increased by more than double d. both a. and b.