Suppose a boom in stock market prices helps make people feel wealthier. Using the model of aggregate demand and aggregate supply, identify the curves that are affected, and which way these curves would shift
The aggregate demand curve would shift to the right.
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In the traditional Keynesian model, if the government increases government spending,
A) the C + I + G + X line will shift up but the aggregate demand curve will not shift. B) the C + I + G + X line will shift down but the aggregate demand curve will not shift. C) the C + I + G + X line will shift up and the aggregate demand curve will shift to the right. D) the C + I + G + X line will shift down and the aggregate demand curve will shift to the left.
Changing the price of a good will usually result in a negative externality
Indicate whether the statement is true or false
At a Nash equilibrium: a. each firm is said to be doing as well as it can, regardless of the actions of its competitor. b. each firm is said to be doing as well as it can, given the actions of its competitor
c. firms always choose strategies in order to maximize the social welfare. d. firms always choose strategies to avoid the worst possible outcome.
If income elasticity for a good or service is ______, then we can say that the good or service is ______.
A. zero; inferior B. negative; normal C. positive; inferior D. positive; normal