According to the real business cycle model
A) increases in aggregate demand do not affect GDP.
B) increases in aggregate demand lower the price level.
C) increases in aggregate demand raise GDP.
D) increases in aggregate demand lower GDP.
A
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Often bar owners will require that patrons stand in a line to get a wristband entitling them to pay a preferred price for drinks if they arrive early to the bar
The wristbands are typically tamper- resistant and can be easily identified if patrons have been switching wristbands with other customers. What is the bar owner concerned about and why does he make his patrons wear these bands?
Customers often complain about the high price of accessories for their cell phone including batteries, chargers and head sets. Often these items can cost even more than the price of the phone
Explain using price elasticity why this might be the case.
A stock market boom which causes stock prices to rise should cause
A) a decrease in consumption spending. B) a decrease in wealth. C) an increase in consumption spending. D) a decrease in net export spending.
Refer to the information provided in Table 24.4 below to answer the question(s) that follow.
Table 24.4
Refer to Table 24.4. At an output level of $2,000, there is a tendency for output
A. to remain constant. B. to fall. C. to either increase or decrease. D. to increase.