If the government cuts taxes, total spending will fall and AD will shift to the left, ceteris paribus
a. True
b. False
Indicate whether the statement is true or false
False
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A decrease in the price of crude oil would most likely ________.
A. increase aggregate demand in the U.S. B. decrease aggregate demand in the U.S. C. decrease aggregate supply in the U.S. D. increase aggregate supply in the U.S.
From 1929 to 1932, the total value of the stock market:
A. more than tripled. B. decreased by nearly 90 percent. C. more than quadrupled. D. stayed the same.
The determinants of labor demand include:
A. culture and other opportunities. B. supply of other factors and output prices. C. culture and technology. D. culture and population.
Inefficient allocation of resources occurs when
A. no one can be made better off without having someone else give up something. B. it is possible to make some people better off without making others worse off. C. society is operating at a point high on the production possibilities frontier. D. society is operating at a point low on the production possibilities frontier.