In building a model the assumption that allows economists to study only the factors being analyzed is the

A) rationality assumption.
B) ceteris paribus assumption.
C) the self-interest assumption.
D) the scarcity assumption.

Answer: B

Economics

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Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________

A) higher; higher B) higher; lower C) lower; lower D) lower; higher

Economics

Social Security taxes are

A) progressive because all workers pay the tax. B) regressive because higher income workers pay taxes on a smaller percentage of their income. C) proportional because everyone is charged the same percentage tax rate. D) regressive because higher income workers don't pay the tax.

Economics