When the U.S. price level decreases, we would expect a:
A. movement down along the aggregate demand curve.
B. shift straight up of the aggregate demand curve.
C. shift to the right of the aggregate demand curve.
D. movement up along the aggregate supply curve.
A. movement down along the aggregate demand curve.
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The theory of investment that emphasizes the roles of real interest rates and taxes is known as the
A) multiplier model. B) accelerator model. C) Q-theory of investment. D) neoclassical theory of investment.
If the government wants to reduce the burning of fossil fuels, it should impose a tax on
a. buyers of gasoline. b. sellers of gasoline. c. either buyers or sellers of gasoline. d. whichever side of the market is less elastic.
If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for ATC?
What will be an ideal response?
The amount that households have accumulated out of past income through saving and inheritance is
A. present income. B. consumption. C. wealth. D. future income.