People like consuming peanut butter and jelly together. The price of peanuts increases. At the same time, we see the price for Jelly rise. How does this affect the market for peanut butter?
a. The demand curve will shift to the left; the supply curve will shift to the left
b. The demand curve will shift to the left; the supply curve will shift to the right
c. The demand curve will shift to the right; the supply curve will shift to the left
d. The demand curve will shift to the right; the supply curve will shift to the right
a
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Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. If Lee chooses aggression, Cody will respond with ________, and if Lee chooses cooperation, Cody will respond with ________.
A. cooperation; aggression B. aggression; cooperation C. cooperation; cooperation D. aggression; aggression
In Figure 33.4, what is the burden of the tax on employers?
A. The wage increase of W5 - W2. B. The wage increase of W5 - W3. C. The wage increase of W5 - W1. D. The wage increase of W3 - W2.
Most economic historians believe that:
A. the gold standard didn't play a major role in the Great Depression. B. countries that held on to the gold standard recovered from the Great Depression the quickest. C. the gold flows played a central role in spreading the Great Depression. D. if more countries would have been on the gold standard the Great Depression would have been averted.
Which of the following variables is capable of continually increasing aggregate demand with no offsetting influence on any of the components of total spending?
A) the inflation rate B) the interest rate C) government spending D) the money supply E) the wage rate