Which of the following statements is correct?
A) Demand and supply policies move output and the general price level in the same direction.
B) Demand expansion policies lead to increases in output and decrease in the general price level.
C) Supply expansion policies lead to increases in output and decrease in the general price level.
D) None of the above.
Answer: D
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According to the Invisible Hand Theorem, when competitive markets are used to allocate resources
a. no further gains from trade can be created. b. selfish behavior will cause socially undesirable outcomes. c. the resulting distribution of income will be fair and equitable. d. each good's price will equal the value of the labor used in its production.
Define the terms of trade
What will be an ideal response?
Labor is the _____ that can be applied to production.
A) the natural environment. B) produced resources. C) financial assets. D) human effort.
Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.
Figure 30.1Refer to Figure 30.1. If the economy is currently at Point C, ________ in aggregate output moves the economy to I3.
A. pessimism about past growth B. optimism about future growth C. pessimism about future growth D. optimism about past growth