Suppose a fall in stock prices makes people feel poorer. The decrease in wealth would induce people to
a. decrease consumption, shown as a movement to the left along a given aggregate-demand curve.
b. increase consumption, shown as a movement to the right along a given aggregate-demand curve.
c. decrease consumption, shown by shifting the aggregate-demand curve to the left.
d. increase consumption, shown by shifting the aggregate-demand curve to the right.
c
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When the price of a pizza is quoted in dollars, this is an example of dollars serving as:
A. a store of value. B. a medium of exchange. C. a unit of account. D. barter.
In the long run, a profit-maximizing monopolist
a. earns zero economic profit. b. produces the same amount as a perfectly competitive industry. c. receives a higher price for his output than a perfectly competitive firm. d. produces at the output level that minimizes his long-run average total cost.
Producers are willing to offer greater quantities for sale at higher prices because
What will be an ideal response?
Command-and-control policies usually:
A. result in higher costs for firms when compared to pollution taxes. B. don't raise prices as much to consumers as do pollution taxes. C. result in less pollution being produced than when pollution taxes are used. D. result in lower costs for firms when compared to pollution taxes.