A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall will all cause aggregate:
a. demand to shift rightward.
b. demand to shift leftward.
c. supply to shift rightward.
d. supply to shift leftward.
e. supply and aggregate demand to both shift equally inward.
b
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An indifference curve is a line that shows combinations of goods among which a consumer
A) needs equally. B) does not care which combination he or she receives. C) can afford. D) has readily available.
What is consumer surplus? Why would policy makers be interested in consumer surplus?
What will be an ideal response?
How long is the long run?
What will be an ideal response?
Suppose a monopolist and a perfectly competitive firm both have the same cost curves. The monopolist would
a. charge a lower price than the perfectly competitive firm b. charge a higher price than the perfectly competitive firm c. charge the same price as the perfectly competitive firm d. refuse to operate in the short run unless an economic profit could be made, unlike the perfectly competitive firm e. refuse to operate in the short run if an economic loss was present, unlike the perfectly competitive firm