The ability-to-pay philosophy of taxation argues for a progressive form of taxation

Workers and firms are currently expecting the price level to increase from 110 to 114. The Federal Reserve then announces that it will be reducing the growth rate of the money supply

If the Fed's announcement is credible, and firms and workers have rational expectations, describe how the expectations of firms and workers will be affected and how the change in expectations will affect the unemployment rate.

What is the reason why large, short-run declines in farm prices do not significantly reduce farm production in the short run?

A. Farmers' variable costs are high compared with their fixed costs B. Farmers' fixed costs are high compared with their variable costs C. Farmers' prices received are greater than prices paid for agricultural products D. Farmers' prices paid are greater than prices received for agricultural products