In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. We would expect this to ________.
A. affect neither aggregate supply nor aggregate demand
B. reduce aggregate supply
C. reduce aggregate demand
D. increase aggregate demand
Answer: D
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The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is ________ and ________ of labor a year are employed
A) any value less than $25 an hour; any value greater than 40 billion hours B) any value greater than $30 an hour; any value more than 40 billion hours C) any value greater than or equal to $25 an hour; any value less than 40 billion hours D) $30 an hour; 40 billion hours
A demand curve is the graphical representation of the law of demand
Indicate whether the statement is true or false
Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. If this market is unregulated and the price is currently $30, you would expect that the price of sunglasses would
A. rise to $90, so the firm could meet its excess demand. B. remain at $30, because firms would not want to increase the price. C. rise to $60, where quantity demanded equals quantity supplied. D. rise, but the new price is indeterminate from the information provided.
One purpose of regulation of financial markets is to
A) limit the profits of financial institutions. B) increase competition among financial institutions. C) promote the provision of information to shareholders, depositors and the public. D) guarantee that the maximum rates of interest are paid on deposits.