Use the following graph to answer the next question.
A shift of the aggregate demand curve from AD1 to AD0 might be caused by a(n) ________.
A. decrease in net export spending
B. increase in aggregate supply
C. increase in investment spending
D. decrease in the amount of output supplied
Answer: C
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The goal of Medicare is to
A) help the poor and indigent pay their hospital bills. B) prevent poverty in urban cities. C) subsidize medical expenses for the elderly. D) subsidize costs incurred by doctors.
The law of demand says that the lower the price charged for a good, ceteris paribus, the:
a. greater the quantity demanded per period of time. b. greater the demand for the good per period of time. c. smaller the demand for the good per period of time. d. smaller the quantity demanded per period of time. e. larger the supply of the good per period of time.
Which statement is false?
A. During the Great Depression millions of working-class and middle-class people demanded welfare payments. B. Until the 1930s the prevalent theory of poverty was that the poor were lazy. C. The heritage of slavery theory explains most poverty in this country. D. None of these statements are false.
Wheat is produced in a perfectly competitive market. Market demand for wheat increases. This will cause the individual wheat farmer's marginal revenue to __________ and their profit maximizing level of output to __________.
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease