Appropriate fiscal policy in the U.S. in 2009 would attempt to
a. increase taxes.
b. decrease aggregate supply.
c. increase aggregate demand.
d. decrease aggregate demand.
c
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Because a public good creates benefits everyone shares, individuals are generally very willing to bear the cost of providing the good
Indicate whether the statement is true or false
If the Japanese yen was 123 per dollar and now it is 114 yen per dollar, it can be said that
A) the yen has appreciated against the dollar. B) the yen has depreciated against the dollar. C) the dollar has appreciated against the yen. D) Both answers C and B are correct
If market demand increases and market supply decreases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. indeterminate; decrease b. indeterminate; increase c. decrease; decrease d. increase; increase
To enhance their prestige, some country clubs like to point to the fact that they have a waiting list for new members. Even at clubs with high initiation fees, it is common that prospective members have to wait three or more years before there is room
for them on the membership rolls. How do these country clubs set the price of membership to ensure that they have a waiting list? A) Set the membership price above the market clearing price. B) Set the membership price below the market clearing price. C) Set the price so that the quantity supplied of memberships exceeds the quantity demanded. D) Set the price at a level that will generate a surplus of memberships.