Which of the following is NOT true about the aggregate demand curve?
A) The production possibilities curve determines the slope of the aggregate demand curve.
B) The aggregate demand curve shows total planned real expenditures at different price levels.
C) Changes in the economic conditions in other countries will lead to a shift of the aggregate demand curve.
D) The aggregate demand curve considers the entire circular flow of income.
A
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Use the following table, which shows the demand schedule faced by Ninaskets, a pure monopoly selling baskets, to answer the next question.PriceNumber of Baskets Sold$203185167141012151030What is the change in total revenue if the pure monopoly raises the price from $10 to $12?
A. +$120 B. -$300 C. -$120 D. +$300
Christine works as a receptionist in an office. She is not supposed to use the Wi-Fi connection provided by the company to access social-networking Web sites
However, she often uses the Wi-Fi to access these Web sites because her browsing activities are not monitored by her employer. This is an example of ________. A) adverse selection B) moral hazard C) a positive externality D) a free-rider problem
In November, 2012, U.S. lawmakers were faced with a "fiscal cliff:" if they did not agree on how to reduce the federal deficit, automatic tax increases and drastic cuts in government spending would take effect
What would happen if the fiscal cliff occurred? A) The aggregate demand curve shifts leftward, the price level falls and real GDP decreases. B) The aggregate demand curve shifts rightward, the price level rises and real GDP increases. C) The short run aggregate supply curve shift leftward, the price level rises and real GDP decreases. D) The short run aggregate supply curve shifts rightward, the price level falls and real GDP increases.
Suppose that the government is considering a policy to combat unemployment. If the government pays for increased spending by borrowing funds that otherwise would have been used for consumption and investment,
a. the positive effect of increased government spending is augmented by an increase in private spending. b. the negative effect of increased government spending is offset by an increase in private spending. c. the negative effect of increased government spending is augmented by a reduction in private spending. d. the positive effect of increased government spending is offset by a reduction in private spending.