Econ Sample Quiz 2 - SAMPLE Quiz 2 Econ103 Fall 2010 TA...

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SAMPLE Quiz 2 – Econ103 – Fall 2010 – TA Emilie Bagby 1/2 STUDENT’S LAST NAME: FIRST NAME:_ Part I – Multiple-Choice questions Choose the alternative that best answers each question. X Mark only one answer in each question. 1. Which of the following taxes is always regressive? a) a property tax b) a $2 tax on a ticket to the movies c) a corporate tax on profit d) a 25 percent tax on overtime wages e) an income tax 2. If the full-employment level of Macroland's aggregate economy is $1,600 billion and its economy is currently in an equilibrium at $2,100 billion, then Macroland a) has a recessionary gap b) needs an expansion in aggregate expenditures c) needs a reduction in aggregate supply d) has an inflationary gap e) needs an aggregate demand expansion 3. From 2002 to 2003, personal income rose by $500 billion. If the MPC = 0.9, then personal consumption expenditures rose by a) $45.0 billion b) $500 billion c) $450 billion d) $50 billion e) $590 billion 4. What's the tax multiplier if MPC = 0.75? a)
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Econ Sample Quiz 2 - SAMPLE Quiz 2 Econ103 Fall 2010 TA...

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