Which would be one of the factors that increase aggregate demand?
A. An increase in consumer wealth.
B. An increase in the productivity of labor.
C. An increase in personal income tax rates.
D. An increase in real interest rates.
Answer: A
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A circular flow diagram shows the flows from the goods and resources markets
Indicate whether the statement is true or false
Using Scenario 1 what would happen to your budget constraint if you came up with a study technique that allowed you to earn 3 points for every hour spent studying economics and still only 2 points for every hour spent studying French? What has
happened to the relative price of one hour of studying French?
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal. What is the size of the aggregate surplus?
A. $4 billion B. $12 billion C. $10 billion D. $6 billion
Which of the following statements regarding monopolistic competition is not correct?
a. In the long-run equilibrium, price equals average total cost. b. In the long-run equilibrium, firms earn zero economic profit. c. In the long-run equilibrium, firms charge a price above marginal cost. d. In the long-run equilibrium, firms produce a quantity in excess of their efficient scale.