To set a tax rate at the appropriate level to maximize its tax revenues, a government must engage in

If a firm is maximizing profits, the extra revenue it receives from selling its last unit of output exceeds the extra cost of producing that unit

Indicate whether the statement is true or false

Refer to Figure 17-9. A follower of the new classical macroeconomics would argue that a contractionary monetary policy to lower inflation after a supply shock, like that pursued by Volcker in 1979, would result in a movement from

A) C to D to A. B) A to C. C) A to D to C. D) A to B. E) C to A.