Which of the following examples, ceteris paribus, would lead to a change in investment that would shift that nation’s aggregate demand curve?
a. Argentina’s government builds new highways.
b. Portugal experiences a bout of high price levels.
c. Spain’s government raises taxes on businesses.
d. Mexico experiences high consumer debt levels.
c. Spain’s government raises taxes on businesses.
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In a perfectly competitive market, a marginal entrant:
A) earns positive economic profits in the long run. B) is the first firm to enter a market. C) is indifferent between entering and not entering. D) determines the market price of the good it produces.
What is one difference between the Cournot and Stackelberg models?
A) In Cournot, both firms make output decisions simultaneously, and in Stackelberg, one firm sets its output level first. B) In Stackelberg, both firms make output decisions simultaneously, and in Cournot, one firm sets its output level first. C) In Cournot, a firm has the opportunity to react to its rival. D) Profits are zero in Cournot and positive in Stackelberg.
Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn b. increase the supply of soybeans c. decrease the supply of soybeans d. decrease the supply of corn e. have no effect on the supplies of corn and soybeans
The balance of payments always balances, because each of the specific accounts must, by definition, be in balance
a. True b. False