The interest rate effect is part of the reason
A) the long-run aggregate supply curve is vertical.
B) the aggregate demand curve is downward sloping.
C) the short-run aggregate supply curve is upward sloping.
D) the aggregate demand curve is upward sloping.
B
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During a recession, the political incentive structure will encourage politicians to
a. undertake sound economic policies that are consistent with stability and growth. b. adopt any policies, even bad ones, that give the appearance of taking action. c. undertake policies that promote long-term economic growth rather than short-term benefits. d. do nothing and let the recession run its course.
When a tax is imposed on a good for which the demand is relatively elastic and the supply is relatively inelastic,
a. buyers of the good will bear most of the burden of the tax. b. sellers of the good will bear most of the burden of the tax. c. buyers and sellers will each bear 50 percent of the burden of the tax. d. the effective price paid by buyers will decrease as a result of the tax.
Air, an open-access resource, cannot be apportioned into individual private property rights because no individual can easily access the resource and then easily allow designated individuals to use the resource
Indicate whether the statement is true or false
"As the price of personal computers continues to fall, demand increases." This headline is inaccurate because:
A. the statement is backwards: increased demand leads to lower prices. B. a falling price of personal computers increases the quantity demanded, not demand. C. a change in the price of personal computers shifts the demand curve. D. a change in the price of personal computers shifts the supply curve.