Which of the following is a way to address an externality problem?
a. command and control solution
b. corrective tax
c. corrective subsidy
d. all of the above.
d
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Economic growth will NOT result in deflation if aggregate demand shifts
A) outward to the right at the same speed as aggregate supply. B) inward to the left at the same speed as aggregate supply. C) outward to the right as aggregate supply shifts inward to the left. D) inward to the left as aggregate supply shifts outward to the right.
The rule for profit maximization is the same for a monopolist as for a perfectly competitive firm
Indicate whether the statement is true or false
According to the Life-cycle hypothesis, if a person received a payment roughly equals to her current income her consumption would:
A. increase by more than the increase in income. B. would not increase at all. C. increase, but not by as much as the increase in income. D. roughly double.
Explain the demand factor in economic growth
Please provide the best answer for the statement.