Should the government wish to lower the price of gasoline to the consumer, one approach might be
A) to raise the gasoline excise tax.
B) to reduce the gasoline excise tax.
C) to take action to shift the supply curve of gasoline to the left.
D) to lower taxes on automobiles.
B
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Figure 15-1
In , AD1 and SRAS1 indicate initial conditions in the goods and services market. In the short run, which of the following will most likely result from a shift to a more expansionary monetary policy under the rational expectations hypothesis?
a.
price level P1 and output Y1
b.
price level P2 and output Y2
c.
price level P3 and output Y1
d.
price level P1 and output Y2
For a monopoly, marginal revenue for all units greater than 1 is always:
A. less than price because of the price effect. B. more than price because of the price effect. C. more than price because of the quantity effect. D. less than price because of the quantity effect.