Which of the following will cause an increase in aggregate demand?
a. Relative price increase of U.S. goods
b. Relative price decrease of U.S. goods
c. Increase in taxes
d. Decrease in income
b. Relative price decrease of U.S. goods
You might also like to view...
A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive. Then, the price rises to $25, and the firm makes whatever adjustments are necessary to maximize its profit at the now-higher price. Once the firm has adjusted, its
a. quantity of output is higher than it was previously. b. average total cost is higher than it was previously. c. marginal revenue is higher than it was previously. d. All of the above are correct.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
How might other firms in an oligopoly interpret your drop in price?
What will be an ideal response?
Which is the fastest growing component of the federal government budget?
A. spending on the military and the war on terrorism B. spending to improve the nation's public education C. spending on entitlements D. spending to improve and expand the nation's infrastructure