Suppose the government raises taxes. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?
The aggregate demand curve would shift left.
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On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is
A) working out at the gym, having breakfast with friends, and sleeping late. B) working out at the gym. C) zero because you do not have to pay money to use the library. D) not clear because not enough information is given.
In a monopoly, producer surplus is
A) larger than under perfect competition. B) is equal to that under perfect competition. C) smaller than under perfect competition. D) None of these choices is true.
Under perfect competition, firms are relatively ignorant of the actions of their competitors
a. True b. False Indicate whether the statement is true or false
Under which of the following scenarios is active domestic monetary policy least likely to be effective?
A. Fixed exchange rates; perfect capital mobility B. Flexible exchange rates; perfect capital mobility C. Flexible exchange rates; low capital mobility D. All three scenarios are equal.