Which of the following will most likely increase aggregate demand?
A. a decrease in stock market prices
B. an increase in business investment spending
C. a decrease in the expected inflation rate
D. a decrease in real GDP
Answer: B
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According to your authors, the following is a necessary condition for a competitive market:
A) Large numbers of buyers and sellers B) Full and complete information C) Freedom of entry D) Identical products E) All of the above.
If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) earning economic profits indefinitely C) new firms to enter the market D) the market supply to decrease
The marginal cost of pollution abatement is the
A) additional cost to clean up an additional unit of pollution. B) additional benefit from cleaning up an additional unit of pollution. C) total social costs of pollution clean-up divided by total social benefits. D) total social costs of pollution clean-up divided by the total units of clean-up.
Which of the following statements is true?
A) In the United States, the unemployment rate among bachelor degree holders is more than the unemployment rate among high school diploma holders. B) Unemployment rate is higher among groups with lower educational attainment. C) More educated workers have a lower opportunity cost of time than less educated workers. D) The unemployment rate in a country normally increases when the country's economy expands.