Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (3) might represent:
A. government salaries paid to school teachers.
B. property tax payments.
C. a state university's purchase of computers.
D. social security payments to retirees.
A. government salaries paid to school teachers.
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Which of the following raise the incentive for households to save?
a. means-testing of government benefits and inheritance taxes b. means-testing of government benefits but not inheritance taxes c. inheritance taxes, but not means-testing of government benefits d. neither means-testing of government benefits nor inheritance taxes
Exhibit 14-2 Aggregate supply and demand curves
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In Exhibit 14-2, the change in equilibrium from E1 to E2 represents:
A. cost-push inflation. B. demand-pull inflation. C. price-push inflation. D. wage-push inflation.