The Laffer curve shows a relationship between
A. tax rates and tax revenues.
B. the price level and real Gross Domestic Product (GDP).
C. government spending and real Gross Domestic Product (GDP).
D. interest rates and investment spending.
Answer: A
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Here's what we know about last year's weekly demand for 2-night DVD rentals in the Village of Harmony: When P = $3, Qd = 100; at P = $5, Qd = 75; and when P = $7, Qd = 50. This year the village population has increased by 25%
What impact is this most likely to have? A) Each individual's demand for DVD rentals will increase. B) Each individual's demand curve for DVD rentals will shift to the left. C) The market demand curve for DVD rentals shifts left. D) The market demand for DVD rentals increases.
The more block prices a monopoly can set instead of setting a single price,
A) the smaller the deadweight loss. B) the more producer surplus. C) the larger the total welfare. D) All of the above.