Contractions are characterized by
A. an upward movement toward a peak in economic activity.
B. a long period in which no cycles are observed in economic activity.
C. increases in the rate of growth of economic activity.
D. a downward movement toward a trough in economic activity.
Answer: D
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Answer the next question based on the following list of factors that are related to the aggregate demand curve. 1) Real-Balances Effect2) Household Expectations3) Interest-Rate Effect4) Personal Income Tax Rates5) Profit Expectations6) National Income Abroad7) Government Spending8) Foreign Purchases Effect9) Exchange Rates10) Degree of Excess CapacityA change in net export spending would most likely be caused by changes in ________.
A. 5 and 6 B. 2 and 3 C. 7 and 8 D. 6 and 9
In a market, social surplus is maximized if consumers' willingness to pay for the good equals the ________
A) marginal private cost of producing the good B) marginal external cost of producing the good C) marginal social cost of producing the good D) opportunity cost of producing the good
Which of the following is the preferred strategy for the government to follow to remedy the inefficient allocation of resources associated with monopolies?
a. preventing mergers through antitrust laws b. regulating the prices that monopolies can charge c. doing nothing d. None of the above strategies is preferred. Each is a viable strategy.
Labor union
What will be an ideal response?