Which of the following would most likely reduce aggregate demand (shift the AD curve to the left)?
A. A reduced amount of excess capacity.
B. Increased government spending on military equipment.
C. An appreciation of the U.S. dollar.
D. Increased consumer optimism regarding future economic conditions.
C. An appreciation of the U.S. dollar.
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Over the last 50 years, the U.S. labor force participation rate of men has ________ by ________ the labor force participation of women has ________. As a result, the overall U.S. labor force participation has ________
A) increased; more than; decreased; increased B) decreased; more than; increased; decreased C) increased; less than; decreased; decreased D) decreased; about the same rate as; increased; remained steady E) decreased; less than; increased; increased
If credit card usage exhibits a sharp increase, there is
A) an upward movement along the demand for money curve. B) a rightward shift of the demand for money curve. C) a leftward shift of the demand for money curve. D) a downward movement along the demand for money curve. E) a leftward shift of the supply of money curve.
The absence of barriers to entry in monopolistic competition means that in the long run, firms
A) earn an economic profit. B) earn zero economic profit. C) incur an economic loss. D) earn either an economic profit or zero economic profit. E) earn either zero economic profit or suffer an economic profit.
A key contribution of Ronald Coase is that he pointed out that private transactions are efficient when the number of parties involved is small
A) and when property rights are well defined and transactions costs are low. B) and when property rights do not exist. C) and that property rights are irrelevant to the existence of externalities. D) and when corporations are not greedy.