Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the
a. demand for peanut butter to increase
b. supply of peanut butter to increase
c. demand for jelly to increase
d. demand for jelly to decrease
e. supply of jelly to decrease
D
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If government expenditure increases by $200 billion and taxes simultaneously increase by $200 billion, then aggregate demand
A) remains the same. B) decreases no matter what happens to aggregate supply. C) increases no matter what happens to aggregate supply. D) increases only if aggregate supply increases. E) increases only if aggregate supply decreases.
Assuming coffee and tea are substitutes, a rise in the price of coffee will have which of the following effects on the market for tea?
a. A movement up along the tea demand curve. b. A movement down along the tea demand curve. c. A leftward shift in the tea demand curve. d. A rightward shift in the tea demand curve.
An adverse supply shock shifts the short-run Phillips curve to the left
a. True b. False Indicate whether the statement is true or false
If you burn garbage in your backyard and the smoke damages a neighbor's house, the damage is considered an externality.
Answer the following statement true (T) or false (F)