The following list contains items that are related to aggregate demand and/or aggregate supply.1)Government Spending 2)Consumer Expectations 3)Degree of Excess capacity 4)Personal Income Tax Rates 5)Productivity 6)National Income Abroad 7)Business Taxes 8)Domestic Resource Availability 9)Price of Imported Products 10)Profit Expectations on Investments Refer to the above list. Changes in which combination of factors best explain why the aggregate supply curve would shift?
A. 1 and 2
B. 7 and 8
C. 3 and 6
D. 2 and 10
Answer: B
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Following housing market collapse, U.S. personal saving rates have
A) increased. B) decreased. C) remained the same. D) data not yet available.
At an annual interest rate of 10 percent, about how many years will it take $100 to triple in value?
a. 8 b. 10 c. 12 d. 14
Which of the following is a valid criticism of the use of money as a store of value in modern economies?
A. annual inflationary loss of buying power B. money supply is too narrowly defined C. storing money is wasteful D. imperfect as a unit of account
According to the text, gift giving in kind
A. happens only because people expect to get gifts in return. B. always increase consumer welfare. C. should happen more often if people were rational. D. cannot be easily explained by the rational choice model.