How does a decrease in government spending affect the aggregate expenditure line
What will be an ideal response?
it shifts the aggregate expenditure line downward
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If the labor demand curve shifts to the right due to a government policy during a recession, and if wages are flexible, ________
A) real wages will increase B) real wages will decrease C) prices will fall D) unemployment will increase
If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Tina has a comparative advantage in producing banana splits
Indicate whether the statement is true or false
Which of the following sources of revenue is used to fund government spending?
A) political party contributions B) interest C) taxation D) corporate contributions
Pizza joints often offer substantially lower prices for pizza picked up at the shop than for delivered pizzas even though they charge a delivery fee. This may be an attempt at
A) perfect price discrimination. B) group price discrimination. C) quantity discrimination. D) second-degree price discrimination.