The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will move the economy up along a stationary aggregate demand curve.
B) This will move the economy down along a stationary aggregate demand curve.
C) This will shift the aggregate demand curve to the left.
D) This will shift the aggregate demand curve to the right.
Answer: C
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Which one of the following twentieth-century nations eliminated the problem of scarcity?
A) Socialist Cuba B) Socialist China C) Fascist Italy D) The United States of America E) None of the above.
The 100 largest U.S. firms currently control
a. about half of all manufacturing assets in the United States, which represents a decrease since World War II b. about half of all manufacturing assets in the United States, which represents an increase since World War II c. about half of all manufacturing assets in the United States, which represents no change since World War II d. about 40 percent of all manufacturing assets in the United States, which represents a decrease since World War II e. about 40 percent of all manufacturing assets in the United States, which represents an increase since World War II
Under a rule of reason approach, an act is illegal:
a. only if it is shown to result in an anticompetitive outcome. b. if two parties merge. c. if a firm engages in price discrimination. d. if two firms engage in price fixing. e. if two firms undertake a joint venture
The aggregate supply curve is:
A. the relationship between the overall price level and total production by firms. B. downward-sloping. C. the sum total of the production of all the firms in the economy for every given demand level. D. the sum total of the production of all the firms in the economy for every level of profit.