An individual's demand curve for a good is derived by
a. varying the income level and observing the resulting total utility derived from both goods.
b. varying the price of one good and observing the resulting quantities of the other good.
c. shifting the budget line to the left and calculating the loss in total utility.
d. varying the price of one good and observing the resulting quantities demanded of that good.
D
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Regressive income taxes are
A) an important form of income redistribution. B) present when the average tax rate decreases as income decreases. C) present when the average tax rate decreases as income increases. D) Both answers A and B are correct.
If an economy is at potential GDP and an expansionary policy is correctly anticipated, the result will be: a. a short-run fall in output and employment
b. little or no increase in GDP. c. an increase in wages along with a dramatic fall in the price level. d. a rapidly expanding economy. e. a severe recession.