A decrease in government purchases shifts the ________ curve to the ________.
A. aggregate supply; left
B. aggregate supply; right
C. aggregate demand; left
D. aggregate demand; right
Answer: C
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Refer to Figure 12-3. Suppose the prevailing price is P1 and the firm is currently producing its loss-minimizing quantity. Identify the area that represents the loss
A) P2 deP1 B) P3cbP1 C) 0P1 bQ1 D) P3caP0
The three largest Federal Reserve banks (New York, Chicago, and San Francisco) combined hold more than ________ percent of the assets of the Federal Reserve System
A) 25 B) 33 C) 50 D) 67
As a market-based society, non-profit firms are illegal in the U.S
Indicate whether the statement is true or false
Which of the following is an example of a supply shock?
A. A surge in consumer optimism prompts increased buying of goods and services. B. A surprise tax rebate from the government gives people more money to spend. C. A dramatic increase in energy prices increases production costs for firms in the economy. D. Government increases spending on education.