Version A

$31.$ What is this individual's average tax rate?

a$,25\mathrm{.}00\%$

b$.18\mathrm{.}13\%$

c$.12\mathrm{.}50\%$

d$.17\mathrm{.}36\%$

e$.16\mathrm{.}13\%$

$32.$ Which of the following best describes automatic stabilizers?

a$.$ A decrease in government spending or increase in taxes to slow economic expansion

b$.$ Government programs that automatically implement countercyclical physical policy in response to economic conditions

c$.$ Fiscal policy that seeks to counteract business cycle fluctuations

d$.$ An increase in government spending or decrease in taxes to stimulate the economy toward expansion

e$.$ A central bank's action to increase the money supply in an effort to stimulate the economy

$33.$ As a country exits a recession, the price of store$-$brand cereal falls and the quantity sold decreases. Which of the following explains this change?

a$.$ Demand increased; store$-$brand cereal is a normal good

b$.$ Demand increased; store$-$brand cereal is an inferior good

c$.$ Demand decreased; store$-$brand cereal is an inferior good

d$.$ Demand decreased; store$-$brand cereal is a normal good

e$.$ Supply decreased; store$-$brand cereal is a normal good

$34.$ A large retailer begins selling and marketing gold bullion to its customers. Prior to the retailer's actions, their customers were not in the market for gold bullion. What effect will this have on the equilibrium price and quantity in the market for gold bullion?

a$.$ Price decrease; Quantity increase

b$.$ Price decrease; Quantity decrease

c$.$ No change in price or quantity

d$.$ Price increase; Quantity decrease

e$.$ Price increase; Quantity increase

$35.$ Which curve in the Aggregate Demand $-$ Aggregate Supply model is shifted by economic growth?

a$.$ Short Run Aggregate Supply

b$.$ No curve is shifted by economic growth

c$.$ Aggregate Demand

d$.$ Aggregate Demand and Short Run Aggregate Supply

e$.$ Long Run Aggregate Supply