A man-made resource such as a building or a machine is an example of which resource?

When the economy suffers a temporary negative supply shock and the central bank responds by changing the autonomous component of monetary policy to keep inflation at the target inflation rate, then

A) aggregate output drops in the short run. B) output will return to potential output over time. C) aggregate output is stabilized. D) all of the above. E) both A and B.

Which of the following in not a reason that a lump-sum tax imposes a minimal administrative burden on taxpayers?

a. Everyone can easily compute the amount of tax owed. b. There is no benefit to hiring an accountant to do your taxes. c. Everyone owes the same amount of tax, regardless of earnings. d. The government can easily forecast tax revenues.