The graph below represents the market for a product where D1 and S1 show the initial supply and demand curves, and supply shifts to S2 due to a sales tax. The deadweight loss due to the tax is represented by area:

Unemployment insurance payments act as automatic stabilizers by:

a. allowing for more consumer spending during prosperity. b. making the unemployment rate worse during a recession. c. allowing for more consumer spending during a recession. d. changing the Phillips curve to a Laffer curve.

During the recent past, production and income have grown faster than population in highly developed economies because

A. of the availability of expensive and ineffective birth control devices. B. of rapid technological advancements. C. accumulation of both physical and human capital has slowed down. D. famine, war, and pestilence have greatly reduced the population.