The foreign purchases effect on aggregate demand suggests that a:
A. Fall in our domestic price level will increase our imports and reduce our exports, thereby reducing the net exports component of aggregate demand
B. Fall in our domestic price level will decrease our imports and increase our exports, thereby reducing the net exports component of aggregate demand
C. Rise in our domestic price level will increase our imports and reduce our exports, thereby reducing the net exports component of aggregate demand
D. Rise in our domestic price level will decrease our imports and increase our exports, thereby reducing the net exports component of aggregate demand
C. Rise in our domestic price level will increase our imports and reduce our exports, thereby reducing the net exports component of aggregate demand
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Cost-benefit analysis is just a guide to making a normative decision
a. True b. False
Many eligible voters do not vote, and many who do vote don't read the biographies of candidates before they vote. These are examples of
a. the median-voter model b. representative government c. rational ignorance d. stupidity e. laziness
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.
When disposable income is 6000, how much is consumption?
