Which of the following would cause aggregate demand to decrease?
A) The government increases taxes on both business and personal income.
B) A drop in the foreign exchange value of the dollar
C) The Fed increases the amount of money in circulation.
D) Businesses and households believe that the economy is headed for good times, so they begin to feel increased security about their jobs.
A
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The shape of the total-cost curve is inversely related to the shape of the production function
a. True b. False Indicate whether the statement is true or false
A labor contract provides for a first-year wage of $10 per hour, and specifies that the real wage will rise by 3 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.07 in the second year. What dollar wage must be paid in the second year?
A. $11.02 B. $10.70 C. $10.90 D. $10.30
Why is it safe to assume that national defense will always be provided by the government instead of the market?
What will be an ideal response?
You are a hotel manager considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. ProjectBoom (50%)Recession (50%)A$40-$20B-$10$30C$50-$50D$60$60If a manager adopted both project A and project B simultaneously, the expected value of this joint project would be:
A. $40. B. $20. C. $30. D. None of the statements are correct.