Which of the following would likely cause aggregate demand to shift to the right?
A. Increased income taxes
B. Increased firm confidence
C. Decreased government spending
D. Increase in the aggregate price level.
B. Increased firm confidence
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Which of the following statements is true?
A) Optimization in levels is based on behavioral analysis. B) Optimization in differences is based on marginal analysis. C) Optimization in differences is often faster than optimization in levels, as it considers all aspects of the feasible alternatives. D) Optimization in levels is often slower to implement than optimization in differences, as it considers only the aspects in which alternatives differ.
Changes in the growth rate of the velocity of money can't permanently shift the AD curve because:
A. in the long run, the inflation rate is determined by the money supply growth rate. B. in the long run, the inflation rate is determined by the growth rate of the velocity of money. C. in the long run, the inflation rate will be equal to the Solow inflation rate. D. changes in the growth rate of the velocity of money shift the SRAS curve, not the AD curve.
A likely consequence over time of an average-cost pricing policy for a natural monopoly is:
A. an increase in the average cost curve. B. an increase in profits. C. no change in price. D. a decrease in the average cost curve.
Normative economics ________ and positive economics ________.
A. involves judgments; also involves judgments B. does not involve judgments; involves judgments C. does not involve judgments; also does not involve judgments D. involves judgments; does not involve judgments