The adverse impact of a negative aggregate demand shock is reduced when the government does not target the deficit because
A. targeting the deficit causes further negative aggregate demand shocks.
B. the economy is always producing potential output.
C. negative aggregate demand shocks do not affect the deficit.
D. not targeting the deficit causes positive aggregate demand shocks.
Answer: A
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As price increases, additional suppliers are willing to produce a commodity.
Answer the following statement true (T) or false (F)
Jay set up his hot dog stand near the business district. His total variable cost includes the
A) annual insurance for the hot dog stand. B) cost of buying the hot dog stand. C) cost of the hot dogs and condiments. D) interest he pays on the funds he borrowed to pay for advertising. E) revenue he gets when he sells his first hot dog each day.
In which of the following assets are commercial banks in the United States NOT allowed to invest checkable deposits?
A) home mortgages B) corporate bonds C) municipal bonds D) U.S. Treasury bonds
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. Which of the following would be considered a variable cost of this company?
A. The rent B. The fabric C. The cutting shears D. None of these would be considered a variable cost.