Government spending and taxes
A) do not change aggregate demand.
B) are an important component of aggregate supply.
C) do not play a big role in determining GDP.
D) are a major determinant of aggregate demand.
E) cannot affect the price level.
D
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Refer to Table 4-4. If a minimum wage of $10.00 an hour is mandated, what is the quantity of labor supplied?
A) 390,000 B) 370,000 C) 350,000 D) 40,000
Pure monopoly: a. is characterized by a single supplier
b. is a market structure in which no close substitute products are available. c. exists when entry and survival of potential competitors is extremely unlikely. d. is characterized by all of the above.
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is AD, then his income
A. decreased. B. increased and the price of bell peppers decreased. C. increased. D. decreased and the price of bell peppers increased.
By 1937, when a new recession began in the midst of the Great Depression,
A. GDP had almost recovered to its 1929 level, but unemployment was still above the 1929 level. B. both GDP and unemployment had returned to near their 1929 levels. C. unemployment had almost fallen back to its 1929 level, but GDP had yet to recover to its 1929 level. D. neither GDP nor unemployment had returned to near their 1929 levels.