The original source of capital is __________.
Fill in the blank(s) with the appropriate word(s).
savings
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The price elasticity of demand for a horizontal demand curve is:
a. 0. b. -1. c. 1. d. - infinity.
If the federal government increases the amount of Social Security benefits for retired persons, then the
a. consumption schedule will shift upward. b. aggregate demand curve will shift outward. c. effect on equilibrium GDP will be the same as a cut in taxes. d. All of the above are correct.
The purpose of an effluent fee is to
A) reduce the amount produced of a good and to raise the market price. B) correct for pollution while keeping the price of the good the same as before the correction. C) reward people producing externalities. D) encourage producers to keep the quantity produced the same while lowering the price.
A decrease in taxes will immediately shift
A. aggregate demand to the left. B. aggregate demand to the right. C. aggregate supply to the left. D. aggregate supply to the right.