The aggregate demand curve has a negative slope, because households and businesses respond to an increase in ________ by reducing their expenditures
A) the inflation rate
B) output
C) the real interest rate
D) all of the above
E) none of the above
C
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A supply schedule is a table that reports:
A) the expected excess supply in the market at different prices. B) the profits earned by producers at different levels of production. C) the different quantities of a good that producers are willing to sell at different prices. D) the different quantities of a good that producers are willing to sell at different income levels.
In practice, turning horizontal and vertical equity into tax law
A. hasn’t been tried. B. has been fairly easy. C. is resisted by nearly all taxpayers. D. has been extremely difficult.
Which of the following will happen if a new firm enters in an oligopoly with differentiated products?
A) Market price will fall. B) Market price will rise. C) Existing firms will gain market share. D) Each firm will have an equal market share.
The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to multiple types of customers b. the costs of arbitraging the price difference across markets is large c. the manufacturer acquires the distributer in the higher priced market d. competition provides little ability for the manufacturer to price above marginal cost