A rise in government spending will cause a(n):
a. Increase in aggregate demand
b. Decrease in prices
c. fall in aggregate demand
d. decrease in real domestic output
a. Increase in aggregate demand
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Suppose the economy is closed and consumption is 8 million, taxes are 2 million, and government purchases are 1.75 million. If national saving amounts to 1.25 million, then what is GDP?
a. 9 million. b. 9.5 million. c. 13 million. d. 11 million.
The principle of comparative advantage was first explained by David Ricardo in the early 1800s.
Answer the following statement true (T) or false (F)
The figure above shows the cost, demand, and marginal revenue curves for a monopoly. The firm
A) will make an economic profit of $20. B) will charge a price of $10 per unit. C) will produce 20 units per day. D) is a natural monopoly.
The primary purpose of a strike by labor unions is to
A) force the firm out of business. B) extract from the firm better and improved conditions of work or contract terms. C) secure a larger market share for the firm. D) ensure they get paid for striking.