Which of the following changes will shift AD1 to AD2?
A. A cut in personal and business taxes
B. An increase in the value of the dollar relative to other currencies
C. A shrinkage in the value of stocks and other financial assets
D. An increase in real interest rates
A. A cut in personal and business taxes
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The change in the total output of a firm associated with using one more unit of an input is referred to as the:
A) marginal product of the input. B) total product. C) average product of the input. D) variable product of the input.
Consider the following pricing strategies:
a. perfect price discrimination b. charging different prices to different groups of customers c. optimal two-part tariff d. single-price monopoly pricing Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing? A) a, b, c, and d B) a, b, and c only C) a and b only D) a and c only
Briefly list and discuss in turn the three limitations of the Pareto criteria
What will be an ideal response?
Supply-siders argue that:
a. reductions in government spending cut infrastructure investment which hurts private sector investment. b. increases in government spending increase infrastructure investment which helps private sector investment. c. increases in government spending causes private sector investment to fall because the government pushes up interest rates. d. reductions in government spending cause private sector investment to fall because the government pushes up interest rates by borrowing. e. increases in government spending causes consumption spending to fall because the government purchases push up interest rates.