How does an increase in taxes affect the expenditure schedule?
a. It causes movement to the left along the schedule.
b. It causes the schedule to shift upward.
c. It causes movement to the right along the schedule.
d. It causes the schedule to shift downward.
d
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Refer to the table above. If the price of a chair decreases to $5 and the rental price of machines is $50 per day, up to how many machines should the firm rent?
A) 2 B) 3 C) 5 D) 7
Which of the following economic activities is ignored in GDP accounts?
A) The market value of medical services B) The market value of educational services C) The market value of illegal drugs D) The market value of prescription drugs E) The market value of the services associated with used-car dealers
Price elasticity of demand along a linear, downward-sloping demand curve increases as price falls
a. True b. False Indicate whether the statement is true or false
Compare the following three ways to model expectations: animal spirits, adaptive expectations, and rational expectations
What will be an ideal response?