The wealth effect, the interest rate effect, and the foreign trade effect are three complementary explanations for the ______ of the aggregate demand curve.
a. leftward shift
b. negative slope
c. rightward shift
d. positive slope
b. negative slope
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A simplified representation of the real world that is used to explain economic phenomena is a(n)
A. model. B. assumption. C. viewpoint. D. implication.
What is a public franchise? Are all public franchises natural monopolies?
What will be an ideal response?
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
If the economy's full-employment output is $6 trillion, actual output is $3.5 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a
A. cyclical deficit. B. structural deficit. C. natural employment deficit. D. debt deficit.