Refer to the graph above. Which of the following would shift the investment demand curve from ID 2 to ID 1 ?
A. A falling real interest rate
B. A rising real interest rate
C. Increasing operating costs for capital goods
D. Decreasing operating costs for capital goods
C. Increasing operating costs for capital goods
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Based on the figure above, the aggregate demand curve will shift from AD0 to AD2 when
A) potential GDP increases. B) the price level falls. C) taxes are lowered. D) government expenditure increases. E) the Federal Reserve raises the interest rate.
Explain why the long-run average cost is typically U shaped.
What will be an ideal response?
For a monopsonist:
a. wage > TWC. b. wage > MFC. c. wage = MFC. d. wage = MRP. e. wage < MFC
To achieve the optimal provision of public goods,
a. the market should be allowed to find its equilibrium without government interference b. the government must limit the provision of these goods c. the government must levy taxes on producers of these goods d. the government must either provide the goods at prices different from those established on the market, or subsidize the production of those who provide thegoods e. a tax must be imposed on consumers equal to the negative externality