A decrease in the price level will
A) shift the aggregate demand curve to the left.
B) shift the aggregate demand curve to the right.
C) move the economy up along a stationary aggregate demand curve.
D) move the economy down along a stationary aggregate demand curve.
Answer: D
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By engaging in trade and acting in their own self interest, World War II POWs were following the economic principle of
A) division of labor. B) international trade. C) voluntary exchange. D) comparative advantage.
Refer to Figure 5-4. Answer the following questions:
1. What would be the equilibrium price and quantity if consumers had to pay the full price of medical services? 2. With insurance acting as a third-party payer, what price will consumers pay for medical service? 3. With insurance acting as a third-party payer, what price will doctors receive for medical service? 4. With insurance acting as a third-party payer, what will be the equilibrium quantity of medical services? 5. With insurance acting as a third-party payer, what will be the value of the deadweight loss?
Which of these firms have a low supplier power?
a. Pharmaceutical firms b. Semiconductor firms c. Car Dealerships d. Software firms
Above the shutdown point, a competitive firm's supply curve coincides with its: a. marginal revenue curve. b. marginal cost curve
c. average variable cost curve. d. average total cost curve.