When the price level falls, the total quantities of goods and services demanded _______ and the AD curve ________
a. decreases; remains unchanged
b. remains unchanged; shifts to the right
c. increases; remains unchanged
d. increases; shifts to the right
e. decreases; shifts to the left
C
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What effect would taxation have on real consumption spending when government spending is autonomous?
A) Taxation reduces real consumption spending. B) Taxation increases real consumption spending. C) Taxation causes both real consumption spending and planned real saving to increase. D) None of the above is correct.
The mythical country of Quitar has just established a policy to give very generous in-kind benefits to the nation's poor, currently defined as those earning less than $10,000 a year. Several years later, the poverty rate has not fallen. Why not?
If the marginal cost were $21, output would be
A. 1.
B. 2.
C. 3.
D. 4.
Which of the following is the formula used for computing an accounting profit?
A. accounting profits = total revenue - implicit costs B. accounting profits = total revenue - (implicit + explicit costs) C. accounting profits = total revenue - explicit costs D. accounting profits = total costs - total revenue