The largest component of aggregate demand is
a. investment spending.
b. consumer spending.
c. government spending.
d. total imports.
b
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Deadweight loss declines in size when a unit of output is produced for which
A. consumer surplus exceeds producer surplus. B. marginal cost exceeds marginal benefit. C. producer surplus exceeds consumer surplus. D. maximum willingness to pay exceeds minimum acceptable price.
Everything else held constant, an increase in the interest rate paid on checkable deposits will cause ________ in the amount of checkable deposits held relative to currency holdings and ________ in the currency ratio
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
In order for a strike to be successful, the union must decrease the supply of both union and non-union labor
a. True b. False
How do speculators provide a more rational guide to production and consumption decisions compared to markets?