Positive demand shocks have a tendency to ________ real GDP relative to potential GDP and ________ the inflation rate

Induced taxes are defined as taxes

A) that vary with real GDP. B) enacted by Congress that explicitly state the amount to be paid. C) we are forced to pay for services from the government. D) that rise in recessions and fall in expansions. E) that are avoided with the use of legal tax shelters.

Refer to Figure 13-9. Which of the graphs in the figure depicts a monopolistically competitive firm that is minimizing its losses?

A) Panel A B) Panel B C) Panel C D) Panel A and Panel C