When the aggregate demand curve shifts to the left against a vertical aggregate supply curve, the price level should __________ unless, as __________ argue, prices may have rigidities
A) fall; Keynesians
B) fall; Monetarists
C) rise; Keynesians
D) rise; Monetarists
A
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The ability to shift a tax burden depends on the relative elasticities of demand and supply for the taxed commodity
a. True b. False Indicate whether the statement is true or false
Which statement best describes the effect(s) that occur when a monopoly firm reduces the price of its product?
a. The "price effect" causes total revenue to fall. b. The "output effect" causes total revenue to rise. c. The "revenue effect" causes total revenue to remain constant. d. Both a and b are correct.
The responsibility of paying for the Social Security benefits for currently retired individuals falls on
A. the retired people themselves. B. no one, since the government prints the money. C. current and future workers. D. only working people over 50 years of age.
Congress passed the Freedom to Farm Act in 1996. What was the purpose of this act?
A) to encourage more people to become farmers B) to grant free land to farmers in order to produce crops that were particularly scarce C) to phase out the use of price ceilings in agricultural markets D) to phase out price floors and return to a free market in agriculture