When the price of a good decreases,
A) supply increases.
B) supply decreases.
C) quantity supplied increases.
D) quantity supplied decreases.
D
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According to this Application, the volatility of energy prices can contribute to uncertainty in the economy. An increasingly uncertain future will tend to cause firms to
A) delay their investment decisions. B) continue with a stable flow of investment spending so as not to get trapped by a downturning economy. C) wait for significant GDP growth before reducing investments. D) rely on the government to make their investment decisions for them.
Explain for each event whether it changes the quantity of real GDP demanded or aggregate demand in the United States
What will be an ideal response?
Despite the Postal Service's legal monopoly over first-class mail delivery,
a. the price of a first-class stamp has not changed for over a decade b. the price of a first-class stamp has fallen as delivery volume increased c. it still produces along the inelastic range of the market demand curve d. its faces competition from foreign suppliers e. it has lost huge chunks of other mail classes to private firms
The marginal tax rate serves as a measure of the extent to which the tax system discourages people from working
a. True b. False Indicate whether the statement is true or false