The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $70 million. Government spending also increases by $70 million and consumption falls by $10 million. If GDP remains the same and Alpetra is a closed economy, then investment

New York City, which has had a rent ceiling law for more than sixty years, has many abandoned apartment buildings throughout the city. Which of the following explains this?

A) Few workers with jobs in the city want to live in there because of pollution. B) No building permits for new apartment buildings have been issued for over fifty years. C) Once any building gets so old, it is abandoned. D) Landlords have no incentive to finance maintenance and remodeling of apartment buildings. E) Rent ceilings make the construction of new buildings so profitable that old buildings are simply abandoned.

A firm could be engaged in successful predatory pricing if: a. It charged prices greater than the average variable cost of production. b. It did not drive rivals out of the market

c. It did not raise its prices after its predatory price cutting. d. None of the above is true.