An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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One of the conclusions of A. C. Pigou was that
A. a system of mandatory controls is the only effective means to control pollution. B. a system of charges can be an effective means to control pollution. C. pollution will wither away if a socialist system is in place. D. pollution cannot be adequately addressed in a price system.
Use the graph to answer the following question:
Suppose the loanable funds market is initially in equilibrium at point A, but then implementation of fiscal policy causes crowding out to occur. After the implementation occurs, the equilibrium in the market would be best represented by
A. point A. B. point B. C. point C. D. point D.
Which of the following elements are commonly emphasized by people who criticize advertisements?
a. increases elasticity; harms competition; manipulates consumer tastes b. increases elasticity; provides service information; causes demonstration effect c. provides service information; causes demonstration effect; manipulates consumer tastes d. harms competition; causes demonstration effect; manipulates consumer tastes
Every state but ____________ is legally obligated to balance its budget.
Fill in the blank(s) with the appropriate word(s).