A decrease in government spending on the park system would cause

A. a movement up and to the left along the aggregate demand curve.
B. the aggregate demand curve to shift to the right.
C. a movement down and to the right along the aggregate demand curve.
D. the aggregate demand curve to shift to the left.


Answer: D

Economics

You might also like to view...

Two types of barriers to entry are called ________ barriers to entry and ________ barriers to entry

A) legal; illegal B) natural; legal C) natural; illegal D) natural; rent seeking E) ownership; rent seeking

Economics

In the figure above, the MRS at point A is ________ the MRS at point B

A) equal to B) less than C) greater than D) not able to be compared to

Economics

Consider the following earnings function:

ahei= ?0 + ?1×DFemmei + ?2×educi+...+ ui versus the alternative specification ahei= ?0 × DMale + ?1×DFemmei + ?2×educi+...+ ui where ahe is average hourly earnings, DFemme is a binary variable which takes on the value of "1" if the individual is a female and is "0" otherwise, educ measures the years of education, and DMale is a binary variable which takes on the value of "1" if the individual is a male and is "0" otherwise. There may be additional explanatory variables in the equation. a. How do the ?s and ?s compare? Putting it differently, having estimated the coefficients in the first equation, can you derive the coefficients in the second equation without re-estimating the regression? b. Will the goodness of fit measures, such as the regression R2, differ between the two equations? c. What is the reason why economists typically prefer the second specification over the first? What will be an ideal response?

Economics

Unless you accept his 'final offer' your negotiation opponent threatens to scrap the whole deal:

a. His threat is more believable if both parties would be harmed by scrapping the deal b. His threat is more believable if he has invested resources that lower his return to other options c. His threat is more believable if he puts his threat 'in writing' d. His threat is more believable if he has balked at this course of action in the past

Economics