If consumers' confidence in the economy rises
A) aggregate demand will shift rightward and the price level will rise.
B) aggregate demand will shift leftward and the price level will fall.
C) aggregate demand will shift rightward and the price level will fall.
D) aggregate demand will shift leftward and the price level will rise.
A
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Full-employment income is the same as the potential GDP of the economy.
Answer the following statement true (T) or false (F)
Refer to the scenario above. The principal in this case is:
A) $300. B) $1,000. C) $1,300. D) $2,300.
Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $54, the efficient quantity of satellites is
A) 0. B) 1. C) 2. D) 3.
According to the above figure, if the firm is earning zero economic profits, what quantity is the firm selling and at what price?
A) Q = 200; P = $4 B) Q = 1,000; P = $5 C) Q = 800; P = $4 D) Q = 1,200; P = $7