Which of these is a likely consequence of an increase in the price level in the economy, other things constant?
a. Firms demanding less imported raw materials
b. Government demanding less military hardware
c. Foreigners demanding greater amount of U.S. goods
d. Households demanding more housing and furniture
e. Firms demanding more capital resources
b
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Which of the following definitions of the money supply includes only the most liquid forms of money?
a. M1 b. M2 c. savings deposits. d. money market mutual deposits.
Opportunity cost can best be defined as
A. the value of the next-highest-ranked alternative. B. the value of all of the alternatives sacrificed. C. the interest cost of financing a business loan at the bank. D. There is no real definition for opportunity cost.
Advertising intended to induce a consumer to discover a previously unknown taste or preference is
A. persuasive advertising. B. direct advertising. C. mass marketing advertising. D. informational advertising.