An increase in the expected future price of inputs will cause:
A. the short-run aggregate supply curve to shift to the left.
B. the aggregate demand curve to shift to the right.
C. a movement rightward along the short-run aggregate supply curve.
D. the long-run aggregate supply curve to shift to the left.
A. the short-run aggregate supply curve to shift to the left.
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Assume that the M1 multiplier is 3.0 and the monetary base is $200 billion. If M1 is currently equal to $600 billion and the Federal Reserve wishes to raise the level to $690 billion, the monetary base should be expanded by
A) $60 billion. B) $30 billion. C) $20 billion. D) $10 billion.
Which of the following might be a method that the government could use to correct a negative externality?
A) an effluent fee on waste from the production of goods that create negative externalities B) government subsidies to producers of goods that create negative externalities C) financing additional production of goods that create negative externalities D) encouraging overallocation of resources of production of goods that create negative externalities
The two ways in which deficit spending can impose a burden on future generations are
A) by requiring future generations to face lower government spending and to utilize a smaller stock of human capital. B) by requiring future generations to face higher taxes and to work with a lower accumulated stock of capital goods. C) by substituting private goods for public goods and thereby benefiting only large businesses. D) by substituting private goods for public goods and thereby shifting resources to foreign residents.
What are the factors that determine a buyer's purchasing decision?
What will be an ideal response?