Other things equal, a decrease in spending on new homes will?
a. increase aggregate demand.
b. decrease aggregate demand.
c. increase short-run aggregate supply.
d. decrease short-run aggregate supply.
e. decrease long-run aggregate supply.
Answer: b. decrease aggregate demand.
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Which of the following statements is true?
A) Hours of labor that go into producing a product is a better unit of account than paper money. B) When money is used as a yardstick to describe the price of various goods and services, it is serving as a store of value. C) The necessary condition required for money to function as a medium of exchange is that it also needs to be a store of value. D) One of the limitations of using money is that it does not allow for the transfer of purchasing power into the future.
Refer to Figure 10.1. The dominant strategy for ________ is to contribute
A) Daisy B) Bo C) Luke D) none of the above
In the above figure, CBL is the cost of breaking the law. If it is illegal to buy and sell, then the price per unit will be
A) $500. B) $400. C) $300. D) $200.
International factor flows tend to lower incomes of those factors in host countries that most directly substitute for that factor, and to raise the incomes of other factors
Indicate whether the statement is true or false