The relationship between the aggregate demand curve and the aggregate expenditures model is derived from the fact that:
A. A decrease in the price level shifts the aggregate expenditures schedule downward and decreases equilibrium GDP
B. A decrease in the price level shifts the aggregate expenditures schedule upward and increases equilibrium GDP
C. An increase in the price level shifts the aggregate expenditures schedule upward and increases equilibrium GDP
D. An increase in the price level shifts the aggregate expenditures schedule downward and increases equilibrium GDP
B. A decrease in the price level shifts the aggregate expenditures schedule upward and increases equilibrium GDP
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Which of the following will cause the demand curve for gasoline to shift leftward?
a. An increase in the price of gasoline b. An increase in the price of cars c. A decrease in the price of gasoline d. A rightward shift of the supply curve of cars e. A leftward shift of the supply curve of gasoline
The new $20 bills are being introduced by the U.S. Treasury primarily to diminish
A. inflation. B. poverty. C. counterfeiting. D. bank failures.
A competitive firm maximizes profit at the output level where
a. marginal revenue exceeds marginal cost by the greatest amount. b. marginal revenue is equal to marginal cost. c. average total cost equals marginal cost d. price minus average total cost is the largest.
"Other things being equal, the monopolist hires fewer workers than would be hired than a perfectly competitive industry." Do you agree or disagree? Why?
What will be an ideal response?