In general economic environments that correspond to higher levels of planned aggregate expenditure for a given level of Y have PAE curves that are:
A. at multiple points on the diagram.
B. lower on the expenditure diagram.
C. higher on the expenditure diagram.
D. equivalent at point in the diagram.
Answer: C
Economics
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Which of the following is a desirable property of money?
a. Scarcity. b. Portability. c. Divisibility. d. All of these.
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Ricardian equivalence implies a tax multiplier of zero
a. True b. False
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Refer to the table shown. If the market price is $6, a perfectly competitive profit-maximizing firm will produce:QuantityMarginal Cost1$3253749
A. 1 unit of output. B. 2 units of output. C. 3 units of output. D. 4 units of output.
Economics
An increase in the price level causes government spending to:
A. increase in social welfare spending only. B. decrease. C. remain unaffected. D. increase.
Economics