A "flat tax" on personal income, in which the same tax rate is applied to every dollar of income earned by each taxpayer, is an example of

By analyzing aggregate demand through its component parts, we can conclude that, everything else held constant, a decline in the inflation rate causes

A) an increase in real interest rates, an increase in investment spending, and a decline in aggregate output demand. B) a decline in real interest rates, a decrease in investment spending, and an increase in aggregate output demand. C) a decline in real interest rates, an increase in investment spending, and an increase in aggregate output demand. D) an increase in real interest rates, a decline in investment spending, and a decline in aggregate output demand.

Refer to the payoff matrix below. Which is the equilibrium of the game using the Pareto criterion?

Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.


A) Best Treats Do Not Introduce and Healthy Snacks Introduce.
B) Best Treats Introduce and Healthy Snacks Introduce.
C) Best Treats Introduce and Healthy Snacks Do Not Introduce.
D) Best Treats Do Not Introduce and Healthy Snacks Do Not Introduce.