An increase in inflation expectations shifts the short-run Phillips curve right and has no effect on the long-run Phillips curve

A proportional income tax is defined as a tax for which

A) total taxes paid increase with the level of income. B) total taxes paid are independent of the level of income. C) the average tax rate increases with the level of income. D) the average tax rate is the same at all levels of income.

Which of the following statements is true?

A) GDP growth distributes income equally to people in the economy. B) GDP accounting rules do not adjust for production that pollutes the economy. C) A decrease in the crime rate increases GDP as people will spend more on security. D) Household production is counted in GDP as it amounts to real production.