A cut in government spending will cause a(n) _________ in aggregate demand, and a decrease in the discount rate will cause a(n) _______ in aggregate demand.
a) increase; decrease
b) increase; increase
c) decrease; decrease
d) decrease; increase
e) none of the above
Answer: d) decrease; increase
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Since collective consumption goods have a marginal cost of zero, the efficient price is equal to _____
a. average fixed cost b. average variable cost c. marginal cost d. the market price
A basic characteristic of the firms in an oligopoly market structure is that they are: a. large (relative to the total market) and interdependent. b. large (relative to the total market) and independent
c. small (relative to the total market) and interdependent. d. small (relative to the total market) and independent.
For a monopoly, when marginal revenue is zero:
A. marginal revenue is minimized. B. total revenue is maximized. C. profits are maximized. D. marginal costs are minimized.
Which of the following statements concerning a monopolistically competitive industry is correct?
A. If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right. B. If there are short-run economic profits, firms will enter the industry and the demand curves of existing firms will shift to the right. C. If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the left. D. If there are short-run economic profits, firms will leave the industry and the demand curves of the remaining firms will shift to the right.