Stabilization policy used during the Great Recession could be abstracted by a
A. decrease in aggregate demand.
B. decrease in aggregate supply.
C. increase in aggregate demand.
D. increase in aggregate supply.
Answer: C
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You offer an extended warranty for your product that is purchased by a few customers. If the product typically fails 2% of the time,
a. you should price the warranty at less than 2% of the product price b. you should price the warranty at exactly 2% of the product price c. you should price the warranty at more than 2% of the product price d. Cannot tell from this information
When the competitive firm's value of the marginal product of labor intersects the market-wage level, the firm:
A. has found the profit-maximizing quantity of labor to hire. B. can increase its profits by hiring any amount greater than that point. C. should consider shutting down since it is not earning profits. D. can increase its profits by hiring any amount less than this point.
Consider two individuals, Ozzy and Sharon, who produce toy boats and yoyos. Ozzy's and Sharon's hourly productivity are as follows:?Yoyos /hourToy boats /hourOzzy124Sharon105Who has the absolute advantage or comparative advantage in the production of yoyos or boats?
What will be an ideal response?
The above table has data from the nation of Atlantica. Based on these data, when disposable income equals 2.0 there is
A) dissavings of $3.0 trillion. B) dissavings of $1.0 trillion. C) savings of $1.0 trillion. D) savings of $3.0 trillion. E) dissavings of $5.0 trillion.