Monetary policy affects aggregate demand with a lag. Approximately how long does it take for monetary policy actions to affect aggregate demand?
A lag of six months is the typical estimate for monetary policy to affect aggregate demand.
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Suppose everyone in a town votes that they prefer improved public transportation systems instead of public parks, then according to the criteria of ________________, that preference should not change even if a third option, like a public zoo, is included.
A. Transitivity B. No dictator C. Unanimity D. Independence of irrelevant alternatives
If the government decreases the income tax rate, then:
A. GDP will decrease. B. aggregate demand will shift left. C. aggregate demand will shift right. D. aggregate supply curve with shift to the right.
Which of the following increases the demand for a good?
A) a rise in the price of a complement B) the expectation that future income will be higher C) an increase in income, assuming the good is an inferior good D) a decrease in the number of buyers E) a fall in the price of a substitute
What effect does a price hike have on the total revenue of the producers?
What will be an ideal response?