Which of the following policy actions shifts the aggregate-demand curve?
a. an increase in the money supply
b. an increase in taxes
c. an increase in government spending
d. All of the above are correct.
d
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Suppose that there is a negative externality associated with alcohol consumption in the United States (e.g., costs of publicly funded alcoholism treatment centers). What will happen to the social costs of this externality if the United States eliminates all tariffs on alcohol imports?
a. The social coasts will increase. b. They will not change. c. They will decrease. d. The social costs will increase but be offset by the private losses associated with increased imports as the tariffs are eliminated.
Under a system of marketable pollution permits, a firm with relatively low abatement costs will buy permits from a firm with relatively high abatement costs.
Answer the following statement true (T) or false (F)
Which of the following is NOT true about the demand curve faced by a monopolist?
A) The demand curve is downward sloping. B) The firm's demand curve is the same as the market demand curve. C) The marginal revenue curve is below the market demand curve. D) The demand curve is perfectly elastic.
A good that has external benefits associated with its production will be
A. overproduced. B. underproduced. C. not produced. D. produced at the optimal level.