The ceteris paribus assumption means
A. from many, one.
B. other things are equal.
C. favors are returned in kind.
D. this is the proof of the matter.
Answer: B
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Supply-side economics is based on the theory that:
a. budget deficits will stimulate demand, output, and employment. b. budget deficits will lead to higher interest rates, which will weaken their expansionary impact. c. higher tax rates will increase tax revenues. d. increases in aggregate supply lower the price level.
As the housing bubble collapsed, the cycle of defaults and falling prices began that would ultimately cause home values to:
A. fall by more than 90 percent in the hardest-hit areas. B. stop rising, practically halting the mortgage loan industry for a number of years. C. fall by more than 50 percent in the hardest-hit areas. D. fall by about 25 percent in the hardest-hit areas.
With price leadership,
a. price equals marginal cost b. the industry output is generally greater than a competitive industry c. prices are set by explicit collusion d. firms price discriminate among different classes of customers e. there is no formal agreement regarding prices
Based on the table, the largest change in aggregate demand takes place during the ______.
a. change in government purchases
b. first change in consumption purchases
c. second change in consumption purchases
d. final change in consumption purchases