A decline in demand in a competitive industry will result in
a. a decrease in equilibrium price
b. a decline in the number of firms in the industry
c. economic losses for some firms in the industry
d. a decline in the equilibrium quantity
e. all of the above
D
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Which of the following is a discretionary fiscal policy action?
A) a progressive tax system that leads to an increase in income tax revenues during an economic boom B) a deliberate tax cut when the economy experiences high unemployment C) an increase in the amount of unemployment compensation because more people become unemployed D) an increase in Supplemental Security Income payments when more people become eligible for the benefits
A sales tax imposed on sellers of a good
A) decreases the demand and shifts the demand curve rightward. B) decreases the supply and shifts the supply curve leftward. C) decreases both the demand and the supply and shifts both the demand and supply curves leftward. D) decreases the supply and shifts the supply curve rightward. E) has no effect on either the demand or the supply.