Say's law argues that
I. overproduction is typical in a market economy.
II. supply creates its own demand.
A) I only B) II only C) Both I and II D) Neither I nor II
B
You might also like to view...
What are the five variables that will shift the demand curve?
What will be an ideal response?
The two types of trade, intertemporal and pure asset swap ________ perfect substitutes, because ________
A) are; they both offer considerable payoff and are equal in the long run B) are; they both involve the smoothing out of now and future consumption C) are not; asset swapping is immediate and involves only assets, while intertemporal trade takes two time periods and involves both assets and goods/services D) could possibly be; different economic states occur at different points in time E) are not; asset swapping never relates to intertemporal trade
If the 1989 salary in 2009 dollars is $147,951, how do we interpret this?
A. The salary earned in 1989 could have purchased the same amount of goods as $147,951 could buy in 2009.
B. It would take $147,951 in 2009 to buy the same amount of goods that was purchased in 1989 with $85,529.
C. Someone earning $85,529 in 1989 would be as well off if he were earning $147,951 in 2009.
D. All of these interpretations are correct.
Which of the following would likely cause aggregate demand to shift to the right?
A. Consumer confidence regarding future income increases B. A tax credit for small businesses is issued C. The government builds new highways D. All of these are likely to cause aggregate demand to shift to the right.