One reason that the aggregate demand curve has a negative slope is that when the domestic price level rises,
A) firms produce more goods and services.
B) firms produce fewer goods and services.
C) people substitute toward more imported goods and services.
D) peoples' wealth increases.
C
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If growing income inequality results from or encourages more rent seeking that, as a whole, make society worse off, this will
A) increase the size of the economic pie despite the income inequality. B) decrease the size of the economic pie. C) not change the size of the economic pie because the rent-seeking behavior will benefit enough parties to completely offset the effects of the increases in income inequality. D) result in complete income inequality as rent seeking continues to occur in the future.
What is a stock? How do stocks affect the economy?
What will be an ideal response?
Stabilization policy describes
A. government programs designed to prevent or shorten recessions and counteract inflation. B. legislation that redistributes income. C. policy that removes price controls. D. policy that follows natural disasters.
What are the coordinates for the point on the MR curve?
a. P* and 0
b. P* and q"
c. MC and 0
d. MC and q*