The model of aggregate demand and aggregate supply can NOT be used to:
A. discuss the pros and cons of income tax cuts.
B. evaluate a tax cut's effect on short run economic fluctuations.
C. assess a tax cut's effect on longer run issues such as the national debt.
D. to discuss income distribution.
D. to discuss income distribution.
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According to the graph shown, if the market is in equilibrium, producer surplus is:
A. $30.
B. $20.
C. $50.
D. $60.
Which of the following would lead to a change in both the quantity of a good buyers wish to purchase and in the quantity sellers wish to sell?
a. a change in the price of a substitute good b. a change in buyers' incomes c. a change in the price of a key input d. a technological improvement e. a change in the expected future price of the good
Technological changes can create dislocations as displaced workers try to find jobs elsewhere and at the same time make existing products more affordable
Indicate whether the statement is true or false
Refer to the graphs shown.
If income is $60 and the price of Y is $3, a decrease in the price of X from $3 to $2 would cause a movement:
A. from point A to point B. B. along the demand curve from point E to point F. C. from point C to point B. D. along the demand curve from point D to point E.