Consumption is the purchase of goods and services by:
a. households

Refer to the above figure. Suppose we are at E* and the dollar weakens. Which aggregate supply curve must apply if the price level increases?

A) 3 only B) 4 only C) 5 only D) 4 or 5

The notion that similar taxpayers should pay similar amounts of taxes is known as

a. vertical equity. b. the benefits principle. c. horizontal equity. d. taxpayer efficiency.