Suppose the U.S. was to experience a series of terrorists' attacks aimed at keeping consumers away from large shopping areas. Supposing further that the primary effect is for consumer confidence to decrease, this would likely
A. decrease aggregate demand.
B. increase aggregate demand.
C. decrease aggregate supply.
D. increase aggregate supply.
Answer: A
You might also like to view...
A single-price monopoly has a marginal revenue curve that is
A) horizontal and equal to price. B) downward sloping and lies below the demand curve. C) upward sloping and is the same as its supply curve. D) downward sloping and lies above the demand curve. E) vertical at the profit-maximizing quantity.
In a competitive market, an efficient allocation of resources is characterized by:
a. a price greater than the marginal cost of production. b. the possibility of further mutually beneficial transactions. c. the largest possible sum of consumer and producer surplus. d. a value of consumer surplus equal to that of producer surplus.
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
When the supply curve of a resource is vertical, then the return to the resource owner is
A) zero. B) partly economic rent and partly opportunity costs. C) partly economic rent and partly profits. D) pure economic rent.