Like the human body, an economy is made up of many small, specialized, interactive parts; like blood circulates in a human body, money circulates through an economy, providing necessary resources for both households and firms
Indicate whether the statement is true or false
true
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What are the components of fiscal policy? Explain how fiscal policy affects aggregate demand
What will be an ideal response?
Standardization of derivative contracts:
A. makes the premiums involved with these contracts increase. B. results in increased risk for the parties involved. C. makes them more difficult to understand and therefore leads to increased misuse. D. leads to greater liquidity and lower risk.
Explain why women, on average, earn less than men in the United States.
What will be an ideal response?
Assume that firms in a perfectly competitive market are earning economic profits. Which of the following statements describes the change in market price and output as a result of the entry of new firms into this market?
A) The market demand curve shifts to the right, causing price to rise and market output to increase. B) The market demand curve shifts to the left, causing price to fall and market output to decrease. C) The short-run market supply curve shifts to the right, causing price to fall and total market output to increase. D) The short-run market supply curve shifts to the left, causing price to rise and total market output to decrease.