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.
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.
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