According to the new classical economics, predictable changes in aggregate demand
a. affect the level of real output.
b. will not affect the level of real output.
c. may or may not affect the level of real output.
d. None of the above
B
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A monopoly can be formed by a bandwagon effect. Which of the following products would most closely match the bandwagon effect?
A) The Atlanta Braves baseball club B) The Dell Computer C) The Apple Watch D) The Chevrolet Corvette
The key explanation for the prevalence of waterway pollution is
A. the inclusion in production of all costs involving use of the waterway. B. that there are private costs but no costs to society. C. that waterways are not private property and can be used free of charge. D. that waterways are subject to the market’s normal control procedures.
The Fed has control over bank reserves and complete control over the money supply
a. True b. False Indicate whether the statement is true or false
Suppose the economy is on the intermediate range of the aggregate supply curve. Which of the following would reduce both real GDP and the price level?
A. a decrease in aggregate supply B. an increase in aggregate supply C. a decrease in aggregate demand D. an increase in aggregate demand