After massive promotion of Justin Bieber's latest music album, the producers reacted by raising prices for his albums. This implies that promotion expenditures made the album demand
a. Elastic
b. Unitary elastic
c. Vertical
d. Inelastic
d
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The total amount of consumption of a society can be increased if
A. firms allow each worker to perform multiple tasks. B. resources are allocated by a central planning group. C. individuals engage in specialization and voluntary trade. D. barter exchange is used in place of money.
The balanced budget multiplier is based on the point that the ________ multiplier is larger than the ________ multiplier so that an equal increase in government expenditure and taxes ________ aggregate demand
A) tax; expenditure; does not change B) expenditure; tax; does not change C) expenditure; tax; decreases D) expenditure; tax; increases E) tax; expenditure; decreases
Which of the following situations is descriptive of the existence of a negative externality.
A. Vernon studies for his biology test late into the night and oversleeps the next morning, thus missing the test. B. Nancy is in the library looking for a book. She is talking to herself and consequently disturbs a few people in the library. C. Bob learns later that he could have purchased a pair of shoes for less than he paid. D. Jackie has had the flu and has stayed in bed for a week. E. none of the above
Increases in autonomous spending cause leftward shifts of the aggregate demand and supply curves
Indicate whether the statement is true or false