The aggregate demand curve will shift to the left ________ the initial decrease in government purchases
A) by less than
B) by more than
C) by the same amount as
D) sometimes by more than and other times by less than
Answer: B
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In labor markets, risk taking accounts for some income differences.
Answer the following statement true (T) or false (F)
Which of the following is NOT a characteristic of long-run equilibrium for a perfectly competitive firm?
A. The firm produces the output level at which long-run average cost is at its minimum. B. Economic profit is zero. C. Price is greater than long-run average cost. D. Price is equal to long-run marginal cost.
The interest-rate effect suggests that:
A. a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending. B. an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending. C. an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending. D. an increase in the price level will decrease the demand for money, reduce interest rates, and increase consumption and investment spending.
Refer to the diagram. Equilibrium output is:
A. j.
B. h.
C. g.
D. f.