Spending on the war in Afghanistan is essentially categorized as government purchases. How do decreases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will shift the aggregate demand curve to the right.
B) They will shift the aggregate demand curve to the left.
C) They will move the economy up along a stationary aggregate demand curve.
D) They will move the economy down along a stationary aggregate demand curve.
B
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Central planning is a key characteristic of which economic system?
A) free market B) price system C) command and control D) mixed economic system
The total level of all planned expenditures in the economy best describes
A) aggregate supply. B) aggregate demand. C) aggregate expenditures. D) both B and C are correct.
Jason is trying to decide whether to buy a bagel or a muffin for breakfast. The bagel costs $0.50 and has a marginal utility of 5 . The muffin costs $1 and has a marginal utility of 20 . Which should he buy and why?
a. The muffin, because it has a higher marginal utility b. The muffin, because it has a lower marginal utility c. The bagel, because it costs less d. The bagel, because it has a higher marginal utility per dollar e. The muffin, because it has a higher marginal utility per dollar
Which of the following is true?
a. Most stockholders own stock because they want to participate in the daily decision making of the firms that they own. b. The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future. c. The potential losses of shareholders are limited to the amount of their investment. d. Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.