A reduction in the price level will cause the aggregate demand curve to shift to the left
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Refer to Negative Externality. According to a Pigovian analysis of this externality, when a tax of $5 per unit is imposed on the firms in this industry, the external costs created by the firms' production will equal
The following questions refer to the accompanying diagram, which shows the effects of a negative externality created by an industry's production. The equilibrium quantity in the absence of any attempt to internalize the externality is QE, and the optimal quantity according to a Pigovian analysis is QO.
a. area C + D + E + G + H.
b. area C + D + G + H.
c. area C + G.
d. zero.
Natural pollutants
a. include such releases as hazardous chemical wastes b. arise from nonartificial processes in nature, such as pollen c. refer to those associated with human activity such as fossil-fuel combustion d. all of the above
Which of the following is NOT a subgroup of the Federal Reserve System?
A) the Federal Open Market Committee B) the Federal Funds Market C) the Federal Reserve Banks D) the Board of Governors
When a firm is experiencing diseconomies of scale
A) the MP curve has a negative slope. B) the LRAC curve has a positive slope. C) it must also experience diminishing returns to labor. D) the MC curve has a negative slope.