In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services
A) equals B) is less than
C) may be greater than or less than D) is greater than
A
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Refer to Table 15-4. What is the amount of the deadweight loss generated by Shakti when it produces the monopoly output?
A) $124 B) $42 C) $36 D) $12
Stores such as Costco and Sam's Club require an annual membership before you can shop there. This is a form of
A) two-part pricing. B) price gouging. C) tie-in sales. D) anti-competitive behavior.
Gasoline and bicycles are substitutes in consumption. Suppose we increase the federal gasoline tax to $1 per gallon. What are the initial changes that result from the tax as these markets adjust to a new general equilibrium?
A) Gasoline price rises, demand for bicycles shift s leftward. B) Gasoline price rises, demand for bicycles shifts rightward. C) Gasoline price rises, move downward along bicycle demand curve. D) Gasoline price rises, move upward along bicycle demand curve.