Since the 1970s, the income tax system in the U.S. has become

A market exchange rate which has been adjusted for inflation is called a

A) nominal exchange rate. B) foreign market price index. C) real exchange rate. D) domestic exchange factor.

Economists who are skeptical of hysteresis in Europe during the 1980s and 1990s cite all of the following as reasons for persistently high unemployment in Europe EXCEPT

A) generous unemployment benefits. B) restrictions on firms' ability to hire and fire workers. C) the existence of an ongoing recession. D) high tax rates.