Aggregate planned expenditure decreases if
A) exports increase.
B) government expenditure on goods and services increases.
C) autonomous consumption increases.
D) real GDP decreases.
E) investment increases.
D
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Your friend Tony opened a pizzeria. You helped him to advertise his pizza, which is in fact the best pizza in town. As a result, the demand for Tony's pizza increases and your friend, noticing lines of customers, raises the price of his pizza
But then he fears that the higher price will cause demand to decline, which will cause the price to drop. Is Tony right in his analysis of the situation? Explain.
Under NAFTA, environmental standards are
A) harmonized around Mexican rules. B) harmonized around U.S. rules. C) harmonized around Canadian rules. D) harmonized around a combination of the rules in all three countries. E) not harmonized.
A rational person maximizes
A) risk. B) return. C) expected utility. D) return variance.
Both screening and signaling:
A. are ways to decrease information asymmetry between two parties. B. correct inefficiency in the market. C. can increase surplus gained in a market. D. All of these statements are true.