Which of the following will shift the aggregate demand curve to the left?
A. A new technology is developed that will increase profits.
B. Income taxes are raised.
C. The government increases spending on education.
D. Consumers become optimistic about the future.
Answer: B
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Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The yield on bond A is approximately
A. 2.9 percent. B. 0.03 percent. C. 2.5 percent. D. 0.02 percent.
Savings are good for a family. If all families increase savings, the economy is better off. This fallacy of composition is called:
a. the paradox of time. b. the paradox of dissaving. c. the paradox of thrift. d. the paradox of value. e. the paradox of choice.
Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted, even when economic inefficiency results. In economics this is referred to as the
a. long-term effect. b. political-fallacy effect. c. shortsightedness effect. d. inefficiency effect.
Suppose a tax is imposed on producers of aluminum as a means of internalizing the externality associated with aluminum production. If the tax accurately reflects the external costs of pollutants released into the atmosphere, then the new supply curve for aluminum coincides with which other curve?