Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000 . How much would a family have to earn to owe $0 in taxes?

In the new Keynesian model, expected inflation is a function of ________

A) expected future output gaps and markup shocks B) current and past inflation C) unanticipated aggregate demand shocks D) expected growth of the money supply

Costs that tend to deter firms from changing their prices in response to changes in the market equilibrium price are referred to as

A) large menu costs. B) small menu costs. C) real menu costs. D) burden costs.