The market demand is the:
a. sum of all individual demand curves in a market.
b. sum of all individual prices in a market.
c. sum of all individual demand curves and supplies in a market.
d. vertical sum of all individual demand curves.
a
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A personal tax cut of $50 billion will affect income differently than an increase in government spending by $50 billion because
A. households may save part of the additional income from the tax cut. B. the increase in government spending is less expansionary than the increase in taxes. C. the increase in government spending will produce a political business cycle. D. households may consume more than the additional income from the tax cut.
Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Producers in which nation have an incentive to specialize in beef production?
A) The U.S. B) Canada C) Both of the above have an incentive to specialize in beef production. D) Neither of the above have an incentive to specialize in beef production.
In the above figure, assume the economy is in equilibrium at point d. Then the Fed decreases the money supply so that the new aggregate demand curve is AD1. In the long run, the new price level will be
A) 100. B) 120. C) 130. D) 110.
Refer to the graph shown. A policy that cuts government spending would be most appropriate when the economy is at point:
A. A. B. B. C. C. D. D.