When disposable income is 2500, C is
A. 0.
B. 1000.
C. 2000.
D. 2500.
D. 2500.
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A reduced interest rate stimulates investment by
a. improving the prospects for a large profit from new investment b. enabling firms to ignore the opportunity costs of financing new investment c. increasing the opportunity cost of the investment d. reducing the cost of the investment e. signaling the existence of eager buyers
If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right, the result will be a
A. decrease in the level of output. B. decrease in the price level. C. higher price level. D. higher unemployment rate.
How would each of the following events affect the level of employment and the real wage rate? Explain which curves in the labor market diagram would be affected and show your work.(a)The stock market falls sharply.(b)A war destroys a substantial amount of a country's physical capital. (c)A new law reduces immigration of workers into the country.
What will be an ideal response?
The deadweight loss of taxation from an income tax is because of _____
a. the inclusion of savings in the tax base b. the Laffer curve c. the income effect d. the substitution effect