Which of the following can prolong the duration of a recessionary gap?
a. an increase in aggregate demand
b. lowering of interest rates
c. an increase in consumer confidence
d. the downward stickiness of prices and wages
d. the downward stickiness of prices and wages
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Discuss the distribution of income around the world. Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?
What will be an ideal response?
McDonald's charges a higher price for a Big Mac in New York City than it does in a small town in Iowa. Is this an example of third-degree price discrimination? Explain
What will be an ideal response?
If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created, their demand curve would shift:
A. up and they would consume more. B. down and they would consume less. C. down and they would consume more. D. up and they would consume less.
Among the answers given below, which one does not explain why an economy grows?
a. growth of population and the labor force b. capital accumulation and capital deepening c. technological change d. high death rates and high birth rates e. increases in skill levels for workers