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.
Answer: D
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Describe the crisis in Russia starting from 1989. Explain why?
What will be an ideal response?
Which of the following institutions is responsible for supervising the banking system of the United States?
a. The Federal Reserve System. b. The Open Market Committee. c. The U.S. Treasury. d. The Federal Deposit Insurance Corporation.
If the production of paper causes economic damage to a community, allowing the market to set the price of paper equal to the private marginal cost of producing paper will
a. generate less than the optimal quantity of paper produced b. generate more than the optimal quantity of paper produced c. generate an equilibrium price that is higher than the price associated with the market's most efficient level of output d. cause some but not all paper producers to go out of business e. benefit society because of externalities generated by the production
For about the last 45 years, federal taxes have remained relatively constant as a percentage of GDP
a. True b. False Indicate whether the statement is true or false