The downward slope of the aggregate demand curve shows that
A. an increase in aggregate demand reduces the long-run aggregate supply.
B. a higher price level will cause planned purchase rates for final goods and services to be higher.
C. a lower price level will cause planned purchase rates for final goods and services to be higher.
D. an increase in aggregate demand increases the long-run aggregate supply.
Answer: C
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Which of the following is NOT part of GDP calculated using the expenditure approach?
A) General Motors' purchases of new capital equipment B) expenditures by the federal government for national defense C) Social Security payments made to the elderly D) the purchase of new homes by consumers
The typical value for the MPC is less than 1.0
a. True b. False Indicate whether the statement is true or false
A natural monopoly occurs when a monopoly:
A. exists because the monopolist can produce a good at a lower cost than anyone else. B. exists because significant economies of scale are present. C. achieves a naturally efficient allocation of resources. D. is created by the federal government.
Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output. As a result the monopoly's profit will fall
Indicate whether the statement is true or false