If the aggregate supply curve has its normal shape, deficit spending will increase
A. both GDP and the price level at about the same rate.
B. the price level before it increases real GDP.
C. the price level but decrease real GDP.
D. real GDP before it increases the price level.
Answer: D
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Producer surplus is the price received ________ summed over the quantity sold
A) plus the consumer surplus B) multiplied by the quantity sold C) minus its marginal cost of production D) subtracted from the value of the good
Spending on new goods and services out of a household's current income is
A. saving. B. consumption. C. investment. D. savings.
Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The marginal cost of the 5th T-shirt is
A) 2. B) 10. C) 12. D) 60.
________ argued for a tax on consumption instead of on income because the standard of living depends not on income, but on how much is consumed.
A. Irving Fisher B. Thomas Hobbes C. John Rawls D. Ben Bernanke