One reason that the aggregate demand curve has a negative slope is because
A) firms supply more when prices rise.
B) people buy more foreign goods when the domestic price level rises.
C) the amount of money in the economy increases when the price level rises.
D) firms supply less when prices rise.
B
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In the above figure, the marginal propensity to consume (MPC) equals
A) 0.9. B) 0.75. C) 0.8. D) 0.85.
Iran called on OPEC in November 2008 to cut production by a further 1 million to 1.5 million barrels per day when it meets in Cairo later this month. Why would OPEC, a cartel, restrict production?
A) to decrease demand B) to increase supply C) to decrease quantity supplied D) to increase profits
An oligopoly market is:
A. a market with many sellers. B. a market with a single seller. C. a market with a few sellers. D. a market with many buyers.
Ad valorem taxation
A) refers to the personal income tax. B) is used to tax goods but not services. C) is assessed by charging a tax rate as a fraction of the market price of a good. D) is a tax that is applied only to cigarettes and alcohol.