An increase in business taxes is likely to reduce aggregate demand because of a decrease in private investment.
a. true
b. false
Ans: a. true
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In the market for gasoline, an increase in the federal excise tax on gasoline would shift the supply curve up
Indicate whether the statement is true or false
In industrywide advertising, managers have an incentive to ________ and ________ for the advertising.
A) free -ride; not pay B) franchise; pay C) franchise; not pay D) free -ride; pay
Which of the following statements contains accurate information regarding power sources for manufacturing in the first half of the 19th century?
a. Steam engines were very costly to operate. b. The water turbine was more efficient than the water wheel. c. Coal was adopted more slowly in the U.S. than in England. d. Along the Ohio River, steam was preferable to water power because of variable stream levels. e. All of above.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.