The passage of new legislation requiring more extensive government regulation of business will most likely:
A. decrease aggregate demand.
B. decrease aggregate supply.
C. increase aggregate supply.
D. increase aggregate demand.
Answer: B
You might also like to view...
Which of the following situations depicts diseconomies of scale?
A) The average total cost of a firm increases from $50 to $55 when it increases its production from 10 units to 20 units. B) The average total cost of a firm decreases from $50 to $40 when it increases its production from 10 units to 20 units. C) The average total cost of a firm remains at $50 when it increases its production from 10 units to 20 units. D) The average total cost of a firm remains at $50 when it decreases its production from 20 units to 10 units.
What factors lie behind capital inflows to the developing world?
What will be an ideal response?
If the economy is at point 1 in Figure 13.1 and there is no policy intervention, what happens next?
A) the economy moves to point 2 B) the economy remains at point 1 C) the economy moves to the left along the AS curve D) the AS curve shifts down, causing both output and inflation to decline E) the AS curve shifts up, causing both output and inflation to rise
Because government bodies have the power to make up for inadequate supply of a good:
A. its presence as a producer is in virtually every market. B. it can be efficiency enhancing in markets for public goods. C. they have incentive to compete with local businesses. D. None of these statements is true.