.How will an unanticipated decrease in aggregate demand influence equilibrium output in the goods and services market?
What will be an ideal response?
Output will decrease, and the general level of prices will fall.
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If there is an external cost from making paper, an unregulated competitive market produces
A) less than the efficient quantity. B) the efficient quantity. C) more than the efficient quantity. D) a quantity that could be greater than, the same as, or less than the efficient amount.
Most countries:
A. protect cartels. B. have laws against firms making agreements about prices or quantities. C. protect oligopoly markets. D. force monopolists to become duopolists.
Would the Waxman-Markey law achieve production efficiency?
What will be an ideal response?
According to the new Keynesian sticky-price theory, a rise in aggregate demand results in ________ price level in the near term and in ________ price level in the longer term
A) a higher; an unchanged B) an unchanged; a higher C) a lower; an unchanged D) a lower; a higher