An increase in government spending would shift the
What will be an ideal response?
aggregate demand curve outward
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The host at a party offers Justin a sixth beer. Justin says, “No thanks, man. The marginal utility of that fifth beer was, like, 20 cents, but the marginal utility of the sixth would be minus 10 cents.” From his comments, we deduce that Justin
A. is an alcoholic. B. may think that a sixth beer would make him sick. C. is irrational. D. wrongly estimates the marginal utility of the fifth beer.
If you must make a choice about consuming two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:
a. two apples. b. three oranges. c. two apples and three oranges. d. two apples or three oranges, whichever you prefer more. e. equal to the difference in the prices of the three options.
Which of the following are examples of leakages?
a. government purchases, net taxes and imports b. government purchases, exports and investment spending c. net taxes, household saving and imports d. net taxes, investment spending and exports e. net exports, investment spending and net taxes
Which of the following is not included in aggregate demand?
What will be an ideal response?