Refer to the information provided in Figure 26.6 below to answer the question(s) that follow.
Figure 26.6Refer to Figure 26.6. Suppose the equilibrium output is initially $600 billion. A decrease in wages and an increase in government spending will, for sure, increase
A. equilibrium output.
B. equilibrium output and decrease the price level.
C. both the equilibrium output and the price level.
D. the price level.
Answer: A
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Which of the following is a result of monopolists producing fewer goods and selling them at a higher price than perfectly competitive firms?
a. The elimination of barriers to entry b. Losses c. Diseconomies of scale d. Positive economic profits
Which statement is most accurate?
A. There is virtually no poverty in the U.S. because the standard of living of all Americans has at least tripled since World War II. B. Compared to the average citizens of Bangladesh, Ethiopia, and Zambia, most of our poor would be considered relatively well off. C. Most of those living below the poverty line are homeless. D. As welfare programs are cut back the poverty rate will decline.
What is the difference between an economic hypothesis and an economic theory?
a. A hypothesis is simplified; a theory is more complex. b. A hypothesis has yet to be tested; a theory has been tested and accepted. c. A hypothesis uses broad assumptions; a theory uses more specific assumptions. d. A hypothesis uses abstractions; a theory uses models.
If a perfectly competitive market had 10,000 identical firms, the market supply curve would be ______ times the quantity supplied by each firm.
a. 5,000 b. 10,000 c. 20,000 d. 100,000