Decreases in interest rates have made it less costly to finance purchases of new houses. What impact will this have on U.S. aggregate demand?
A) None. A nation's aggregate demand is not affected by changes in interest rates.
B) U.S. aggregate demand will remain unchanged.
C) U.S. aggregate demand will decrease.
D) The U.S. aggregate demand curve will shift to the right.
D
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In the figure above, the economy is at point A when the price level rises to 120. Money wage rates and other resource prices remain constant. Firms are willing to supply output equal to
A) $15.5 trillion. B) $16.0 trillion. C) $16.5 trillion. D) None of the above answers is correct.
Monopsony means a labor market with a single buyer
a. True b. False Indicate whether the statement is true or false
The third largest source of government tax revenues that contributes roughly 10 percent to total revenues is:
A. payroll tax. B. personal income tax. C. corporate income tax. D. excise tax.
In a free-market economy, the pricing mechanism always operates to
a. produce an equitable distribution of income. b. provide an efficient allocation of resources. c. correct any inequality in distribution of output. d. equate consumers' desires with ability to pay.