Aggregate demand is reduced by
A. increased government spending.
B. reduced taxes.
C. decreased interest rates.
D. a stronger dollar.
Answer: D
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The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
In the Nash equilibrium of this game:
A. Bagel World abides and Bagels 'R' Us cheats B. both firms abide by the agreement C. Bagel World cheats and Bagels 'R' Us abides D. both firms cheat on the agreement
The figure above shows the market for the chemical hydrogen sulfide, the production of which creates an external cost
If the government assesses the marginal external cost correctly, what is the amount of the pollution tax that eliminates the inefficiency? A) $2 per pound B) $3 per pound C) $4 per pound D) $1 per pound E) None of the above answers is correct.
Microeconomics deals with:
A) the working of the entire economy or large sectors of it. B) employment, growth, and inflation. C) individual units in the economy. D) normative economics for the most part.
Given the aggregate demand curve, an increase in the supply of a productive resource will:
a. increase output but leave prices unchanged b. decrease both output and prices. c. increase the price level and decrease output. d. decrease the price level and increase output. e. increase the price level but leave output unchanged.