The aggregate demand curve
a. would be little affected by a technological advancement
b. shifts to the right when spending decreases
c. shifts to the left when there is a decrease in taxes
d. can shift independently of the aggregate supply curve
e. shifts to the right when there is an expectation that future income will fall
A
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A textbook publisher is in monopolistic competition. The firm can sell no books at $100 a book, but for each $10 cut in price, the quantity of books it can sell increases by 20 books a day. The firm's total fixed cost is $2,400 a day
Its average variable cost and marginal cost is a constant $20 per book. What is the firm's maximum economic profit? A) zero B) $800 C) -$400 D) $1,000
Which of the following is not a leading variable?
A) Inflation B) Stock prices C) Average labor productivity D) Residential investment
Crowding out refers to the fall in
a. investment spending caused by higher taxes b. consumption spending caused by higher taxes c. consumption spending caused by higher levels of government spending d. government spending to do a balanced budget amendment e. private investment caused by an increase in government spending
Which of the following is the best example of a hypothesis?
a. When the price of bananas decreased last year, the sales of bananas rose significantly. b. If the price of bananas decreases, the sales of bananas will increase. c. If the price of bananas increases, no one can predict how banana sales will change. d. When the price of bananas increased, the supply of bananas also increased.