Refer to the information provided in Figure 24.5 below to answer the question(s) that follow.
Figure 24.5Refer to Figure 24.5. If the economy is in equilibrium and the government increases taxes by $50 billion, equilibrium aggregate output ________ to $________ billion.
A. decreases; 1,550
B. decreases; 1,400
C. increases; 2,000
D. decreases; 1,450
Answer: D
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On the graph above, suppose the labor market is in equilibrium at point 2, then the demand curve shifts down to the position shown on the graph
If the real wage has not changed, then the horizontal distance between points ________ measures the unemployment that results. A) 2 & 4 B) 2 & 1 C) 3 & 4 D) 6 & 4
A recent medical study shows that peanuts are one of the leading causes of high cholesterol. This would cause the demand for peanuts to
a. Shift to the left b. Shift to the right c. go down the demand curve d. not change
Aggregate demand is the total demand for the final goods and services produced in an economy.
Answer the following statement true (T) or false (F)
A price change will have no effect on total revenue if demand is
A. Perfectly elastic. B. Unitary elastic. C. Inelastic. D. Elastic.