If a variable other than the price level changes, the AD curve shifts
a. True
b. False
A
You might also like to view...
Public choice analysis indicates
a. politicians under representative democracy are led as if by an invisible hand to adopt legislation that enhances the wealth of a nation. b. political structures consistent with economic efficiency tend to emerge naturally from the ordinary political process. c. constitutional rules establishing procedures and limiting the ability of the political process to engage in redistributive activities can improve the economic efficiency of government. d. all of the above are correct.
Assume the government decides to decrease taxes and to finance the expected budget deficit with borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right. b. Start the analysis in the real goods market with aggregate supply shifting to the left. c. Start the analysis in the real goods market with aggregate supply shifting to the right. d. Start the analysis in the real credit market with demand for real credit shifting to the left. e. Start the analysis in the real credit market with demand for real credit shifting to the right.
Instruments so widely accepted and purchased by others that they are very similar to cash are known as
a. liquid assets b. hard assets c. corporate assets d. marketable securities e. none of the above
In order for a firm to receive monopoly profits, there must be
A. mutual interdependence among firms. B. barriers to market entry. C. homogeneous products. D. free entry and exit to the market.