When taxpayers pay more in taxes because of inflation even when the nominal tax structure remains the same, this is called _____

Suppose there is a reduction in the expected future interest rate. This will cause which of the following to occur?

A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period

Figure 9.3Figure 9.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $6, then the firm will:

A. be better off producing 150 units than shutting down. B. be better off exiting the market and using the resources for other production activities. C. be better off shutting down in the short run and waiting until the market price rises above $10. D. None of these