A decrease in labor costs will cause aggregate ________.
A. demand to decrease
B. supply to decrease
C. supply to increase
D. demand to increase
Answer: C
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When a transfer price is set lower
a. the buying division will chose to purchase less from the selling division b. the buying division will chose to purchase more from the selling division c. the selling division will chose to purchase less from the buying division d. the selling division will chose to purchase more from the buying division
There are apartments in Chicago whose rooftops overlook Wrigley Field. On game day you can find free riders on the roof enjoying ____
a. free property rights b. an externality c. a public good d. excess utility
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
The short-run aggregate supply curve is upsloping because higher price levels:
A. lower interest rates and encourage firms to invest and produce more. B. create incentives to expand output when resource prices are unresponsive to price-level changes. C. encourage importation of foreign goods. D. create an expectation among producers of still higher price levels.