In the above figure, Brendan originally consumes at point A. If his income rises and both compact discs and haircuts are normal goods then he will begin consuming at a point such as
A) F.
B) B.
C) C.
D) D.
C
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Government stabilization policy
A. cannot influence investment spending. B. can stimulate aggregate demand and thereby induce businesses to invest, but the amount is not totally predictable. C. can stimulate aggregate demand, but investment spending will not be affected. D. can stimulate aggregate demand, but only in the long run.
Public funding of stadium construction for a professional football, baseball or basketball team could be argued using "merit good" logic
Indicate whether the statement is true or false
Suppose this economy is currently closed. ________ is/are most likely to want open trade, and ________ is/are most likely to oppose opening the economy to trade.
A. The government; bike purchasers B. Bike manufacturers; bike purchasers C. Bike purchasers; bike manufacturers D. Bike manufacturers; the government
If an economy has a money supply of $200, a velocity of 12, and a price level of $2, the output level must be:
A. 6,000 units. B. 1,200 units. C. 600 units. D. 2,400 units.