The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin ________ and the demand for aspirin ________ so that the equilibrium price of aspirin ________
A) increases; increases; rises
B) decreases; increases; rises
C) increases; decreases; might rise, fall, or stay the same
D) decreases; increases; might rise, fall, or stay the same
B
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If net exports increase by 250 and the mpc is 0.75, equilibrium aggregate output increases by
A) 250. B) 500. C) 750. D) 1000.
Classical economists argue that all workers could have been employed during the Great Depression if they had been willing to accept falling wages
But President Hoover and his supporters recommended that hours be cut before wages which increased unemployment. Indicate whether the statement is true or false
When a country allows trade and becomes an importer of bottled water, which of the following is not a consequence?
a. The gains of domestic consumers of bottled water exceed the losses of domestic producers of bottled water. b. The losses of domestic producers of bottled water exceed the gains of domestic consumers of bottled water. c. The price paid by domestic consumers of bottled water decreases. d. The price received by domestic producers of bottled water decreases.
The following would cause an upward shift in the C + I + G + X curve EXCEPT
A. an increase in export spending. B. a decrease in import spending C. an increase in household wealth. D. an increase in disposable income.