Within the AD/AS model, which one of the following adjustments will cause the economy to return to its long-run capacity when output is temporarily greater than the economy's long-run potential?
a. Lower wage rates and resource prices reduce short-run aggregate supply.
b. Lower interest rates increase aggregate demand and, thereby, stimulate output.
c. Higher wage rates and resource prices reduce short-run aggregate supply.
d. A decrease in prices reduces aggregate demand.
C
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The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant.Units of ResourceTotal Product124242460680792If the product the firm produces sells for a constant $3 per unit, the marginal revenue product of the seventh unit of the resource is
A. $12. B. $13. C. $39. D. $36.
What was the source of the problems encountered by many financial firms during the late 2000s?
What will be an ideal response?
Public goods are unlikely to be provided by the private sector because
A) the production of the good creates negative externalities. B) no one can be excluded from the consumption of the good. C) the consumption of the good creates negative externalities. D) the exclusion principle does not apply to public goods.
represents the spending of consumers, government, businesses, and foreign trade partners
What will be an ideal response?