Theater owners often stop their discounts when they show an extremely popular movie because
What will be an ideal response?
the demand for tickets increases when popular movies are running, which raises the cost of admitting people when seating capacity is limited.
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In an expansion,
a. federal budget deficits tend to rise b. federal budget deficits tend to fall c. the federal debt tends to rise faster than in a recession d. federal government tax receipts tend to fall e. there is pressure on the Fed to monetize the debt
An expansionary monetary policy eventually leads to a decrease in business investment spending and consumer borrowing
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown. U.S. fiscal policy is most likely to shift the demand for dollars from D1 to D2 if it increases U.S.:
A. income. B. imports. C. interest rates. D. prices.
Answer the following questions true (T) or false (F)
1. YFE represents the level of potential GDP in the economy. 2. Real GDP is equal to nominal GDP adjusted for productivity. 3. The marginal propensity to consume is equal to the percent change in consumption with respect to a change in income.