Which of the following statements represents a correct and sequentially accurate economic explanation?
A) If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward.
B) If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward.
C) If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.
D) If consumption falls, total expenditures on goods and services falls, and the AD curve shifts leftward.
E) c and d
E
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Under rent controls
A) there is a shortage of rental units. B) the quantity supplied of rental units is greater than it would be under freely competitive markets. C) there is less government involvement in rental markets overall because there is a better supply of low-income housing. D) all renters are better off than under freely competitive markets.
In a market where the price is restricted by price floors or price ceilings,
a. all sellers will be able to sell everything they produce. b. surpluses and shortages will exist. c. all buyers will get what they want. d. disequilibrium will automatically correct itself. e. surpluses and shortages will put pressure on the price to move to its equilibrium.
Total expenditures can be written as C + I + G + (X ? IM)
a. True b. False Indicate whether the statement is true or false
Profit-maximizing firms enter a competitive market when existing firms in that market have
a. total revenues that exceed fixed costs. b. total revenues that exceed total variable costs. c. average total costs that exceed average revenue. d. average total costs less than market price.