The aggregate demand curve is downward sloping because of the
A. real balance effect.
B. interest rate effect.
C. foreign purchases effect.
D. all of the options are correct.
Answer: D
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________ will lead to an increase in the gross domestic product of a country, all other variables remaining unchanged
A) An increase in expenditure incurred by the government B) A fall in the expenditure on consumption C) An increase in imports D) A fall in the expenditure on investment goods
Workers expecting inflation will expect wage increases to be built into their wage contracts
a. True b. False Indicate whether the statement is true or false
When a natural monopoly is regulated to charge a price equal to average total cost, producer surplus decreases, but total surplus increases.
a. true b. false
A firm with market power will maximize profit by hiring the amount of an input at which the
A. last unit of the input hired adds the same amount to total output as to total cost. B. additional output from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount. C. additional revenue from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount. D. last unit of the input hired adds the same amount to total revenue as to total cost.