Because of the slope of the aggregate demand curve, we can say that
A) a decrease in the price level leads to a lower level of real GDP demanded.
B) an increase in the price level leads to no change in the level of real GDP demanded.
C) a decrease in the price level leads to a higher level of real GDP demanded.
D) an increase in the price level leads to a higher level of real GDP demanded.
Answer: C
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The tax multiplier is the
A) magnification effect of a change in taxes on aggregate supply. B) magnification effect of a change in taxes on the national debt. C) magnification effect of a change in taxes on the budget deficit. D) magnification effect of a change in taxes on government expenditures. E) magnification effect of a change in taxes on aggregate demand.
Which of the following is an effect of paper recycling on pulpwood?
a. Recycling leads to an increase in acreage devoted to pulpwood. b. Recycling leads to a decrease in acreage devoted to pulpwood. c. Recycling increases the demand for pulpwood. d. Recycling increases the market price of pulpwood.
There is 5 percent average tax on imported goods in the United States. This tax is known as a(n) ________.
A. quota B. tariff C. income tax D. sales tax
When price and marginal cost are equal for a perfectly competitive firm, the firm is
A) minimizing average total cost. B) maximizing total revenue. C) maximizing economic profit. D) earning negative economic profit.