If Congress raised taxes on businesses, this action would:
a. Increase per-unit production costs and thus increase aggregate demand
b. Increase per-unit production costs and thus decrease aggregate supply
c. Increase aggregate demand and increase aggregate supply
d. Increase per-unit production costs and thus increase aggregate supply
b. Increase per-unit production costs and thus decrease aggregate supply
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If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?
A) The equilibrium price rises and the equilibrium quantity increases. B) The equilibrium price falls and the equilibrium quantity decreases. C) The equilibrium price rises and the equilibrium quantity decreases. D) The equilibrium price falls and the equilibrium quantity increases.
Which of the following is an example of money serving as a medium of exchange?
a. Richard puts money into a piggy bank. b. Ellen deposits cash into a money market account. c. Sean puts a new $20 bill into his currency collection. d. Marian buys a carbo-loaded drink before a marathon.
The way we know what commodities are relatively scarce or abundant is through
A) transaction costs. B) prices. C) price ceilings. D) price floors.
Refer to the information provided in Table 14.5 below to answer the question that follows. Table 14.5B's Strategy ?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. What is the Nash equilibrium in the game?
A. (Advertise, Advertise) B. (Advertise, Don't Advertise) C. (Don't Advertise, Don't Advertise) D. (Don't Advertise, Advertise)