The idea that aggregate demand fluctuates due to irrational waves of pessimism by households and firms is known as _____
Fill in the blank(s) with correct word
animal spirits
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Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the market price of $2.00 per cup. If Java Joe independently decreased its price per cup to $1.50,
a. its sales would rise to 250 cups b. its revenue would decrease c. its revenue would rise d. its total revenue would equal $200 e. the market price will fall to $0.75 as other coffee sellers match the price cut
Technological change, such as the information technology revolution of the 1990s can shift the aggregate supply curve outward. If, at the same time, the government is decreasing spending, the most likely outcome of these two factors is a(n)
A. increase in the price level. B. decrease in the price level. C. increase in real GDP. D. decrease in real GDP.
If Canada is growing too rapidly, and at the same time is agreeing to work toward reducing its trade surplus, Canada could forsake:
A. none of its international commitments. B. its domestic goal but not its international commitment. C. none of its domestic goals. D. its domestic goal and its international commitment simultaneously.
Jamaica has a comparative advantage in the production of
A. radios and Norway has a comparative advantage in the production of coolers. B. neither good and Norway has a comparative advantage in the production of both goods. C. both goods and Norway has a comparative advantage in the production of neither good. D. coolers and Norway has a comparative advantage in the production of radios.