Which of the following will shift the aggregate demand curve to the right?
A. Income taxes are raised.
B. Business managers become pessimistic about the future.
C. Consumers become pessimistic about the future.
D. The government increases spending on education.
Answer: D
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In Spain, people are considered organ donors unless they explicitly indicate they do not want to be. In the United States, people are only considered organ donors if they explicitly indicate they wish to be. Behavioral economics would suggest that
A) everything else equal, the opt-in system of Spain would generate more organ donors. as a percentage of the adult population. B) everything else equal, the opt-in system of the United States would generate more organ donors as a percentage of the adult population. C) everything else equal, the opt-out system of Spain would generate more organ donors. as a percentage of the adult population. D) everything else equal, the opt-out system of the United States would generate more organ donors as a percentage of the adult population.
If a perfectly competitive firm's marginal revenue was less than its marginal cost, a. it would raise its price in order to increase its profits
b. it would contract its output but not raise its price in order to increase its profits. c. it is currently earning economic losses. d. both (a) and (c) are true.
A decrease in aggregate supply will cause the price level to
a. rise and real GDP to fall b. rise and real GDP to rise c. rise and the unemployment rate to fall d. fall and real GDP to rise e. fall and the unemployment rate to rise
Market power in the United States causes a huge loss of economic efficiency
Indicate whether the statement is true or false