A change in consumers' expectations about the future will shift both the aggregate expenditure curve and the aggregate demand curve.
a. true
b. false
a. true
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The dollar is regarded as the "safe haven" currency; investors flock to it when they are worried about the outlook for the global economy
Fears were at their greatest in late 2008 and early 2009 after the collapse of the Lehman Brothers investment bank in September 2008. As investors flocked to the dollar A) the demand for dollars increased and the exchange rate increased. B) the demand for dollars decreased and the exchange rate decreased. C) the supply of dollars increased and the exchange rate decreased. D) the supply of dollars decreased and the exchange rate increased.
Who are the only ones not affected when a Pigouvian subsidy is implemented for a positive externality in a market?
A. Producers B. Consumers C. Those affected by the externality D. All of these groups are affected when it becomes internalized.
Which of the following is assumed constant along a given supply curve for pistachio ice cream?
a. the price of pistachios and the price of pistachio ice cream b. the price of pistachio ice cream and the price of alternate flavors of ice cream c. the prices of alternate goods, but not the prices of inputs d. all variables affecting supply other than the productive capacity of the industry e. all variables affecting supply other than the price of pistachio ice cream
Which of the following is NOT a service?
A. physical labor purchased by a producer B. things purchased by a consumer that do not have physical characteristics C. tasks performed by someone else D. a diamond used in an engagement ring