Which of the following would cause an increase in aggregate demand (AD)?
A. a rise in the foreign exchange value of the dollar
B. a decrease in price levels
C. an increase in interest rates
D. a decrease in taxes
Answer: D
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A reduced demand for lawyers' services to prosecute damage suits
A) lowers the cost of hiring a lawyer to draw up a will. B) raises the cost of hiring a lawyer to draw up a will. C) raises the demand for lawyers' services in drawing up wills. D) will not affect the cost of hiring a lawyer to draw up a will though it could affect lawyers' fees.
The monetary growth rule is a plan for increasing the quantity of money
A) at a rate which increases as the economy grows. B) at a rate which decreases as the economy declines. C) at a rate which increases during recessions and decreases during expansions. D) at a fixed rate that does not respond to changes in the economic condition.
Producers may respond to a unit tax by _____
a. increasing the value of each unit b. increasing the number of units sold c. differentiating their product line d. selling the product in bundles
If Sam does not have a job and is NOT currently looking for work but has looked in the past, he is considered:
A. unemployed and in the labor force. B. unemployed and not in the labor force. C. not in the labor force. D. unemployed.