Which of the following is not a reason why aggregate demand decreased following the housing bubble collapse?
A. People stopped investing in homes.
B. Consumption decreased.
C. Business investment decreased.
D. Costs of production increased throughout the economy.
D. Costs of production increased throughout the economy.
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Consumption spending includes spending on durable goods, nondurable goods, and services
Indicate whether the statement is true or false
What is rent seeking and how is it related to regulatory capture?
What will be an ideal response?
The following are properties of the logarithm function with the exception of
A) ln(1/ x) = -ln(x). B) ln(a + x) = ln(a) + ln(x). C) ln(ax) = ln(a) + ln(x). D) ln(xa) a ln(x).
When production is characterized by persistently declining long-run average costs as output increases
A) the costs of production are greater when competition exists than when a single firm produces a good. B) it is impossible for two firms to compete in the market. C) the costs are lower if a single firm exists, and even if the firm is unregulated, price will still be lower with a single firm. D) there is no need for the government to limit competition by licensing requirements.