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1. If the economy is to have significant built-in stability, then when real GDP increases, the tax revenues should:
a. Fall proportionately more than the change in GDP
b. Fall proportionately less than the change in GDP
c. Rise proportionately more than the change in GDP
d. Rise proportionately less than the change in GDP
2. The short-run aggregate supply curve:
a. Becomes flatter at output levels above the full-employment output
b. Becomes steep at output levels above the full-employment output
c. Is upward-sloping with a constant slope
d. Is horizontal
Southwest Airlines is adding $100 million a year in new fees. Under new rules customers only get a partial refund for missed flights, prices are being raised for a third checked bag and for early boarding slots. The airline wants to increase rev..
Crew Brew produces a popular brand of beer in its mini-brewery located on a small river in Kentucky. Assume that capital can be purchased for $8 per unit, and labor costs $6 per unit. What is the optimal combination of inputs for the firm to employ..
How might prohibitions on advertising affect the cigarette industry in the short run, and in the long run using a Prisoner's Dilemma sort of argument.
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Cubby Company entered into a lease contract for ten photocopy machines for its corporate headquarters. The lease contract qualifies as an operating lease in all terms except there is a bargain buy option.
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