Which statement is true?
A. The perfect competitor generally makes a profit in the long run.
B. There are many firms in a perfectly competitive industry.
C. A perfect competitor will sell below market price to get a larger market share.
D. A perfect competitor never makes a profit.
B. There are many firms in a perfectly competitive industry.
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What would happen to aggregate demand if the federal government increased military purchases and state and local governments increased their road building budgets at the same time? a. AD would increase
b. AD would increase, because only federal government purchases affect AD. c. AD would increase only if the change in federal purchases were smaller than the change in state and local purchases. d. AD would decrease only if the change in federal purchases was smaller than the change in state and local purchases.
Explain whether or not the ability-to-pay principle of tax equity is consistent with the benefits received principle of taxation.
What will be an ideal response?
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Which of the following would tend to decrease velocity?
A. An increase in interest rates B. More frequent paychecks C. Expected decreases in inflation D. More efficient payment systems