Other things the same, a decrease in the price level makes the dollars people hold worth
a. more, so they are willing to spend more.
b. more, so they are willing to spend less.
c. less, so they are willing to spend more.
d. less, so they are willing to spend less.
A
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According to your textbook, the following is the prime cause of traffic congestion:
A) Population growth B) The American automobile industry C) Most roadway space is not priced. D) A lack of commitment to public transportation expansion
An increase in the number of producers will:
a. increase the market supply, because the price will rise. b. increase the market supply only when market demand increases too. c. increase the market supply, because market supply is the sum of all individual supply curves. d. increase the market supply only if each supplier has an identical supply curve. e. decrease the market supply, because firms compete with each other and each firm will supply more.
The long-run aggregate supply curve (LRAS) corresponds to full-employment real GDP with zero frictional and structural unemployment
a. True b. False Indicate whether the statement is true or false
Industrial policy is an effort by a government to:
A. regulate prices in particular industries. B. identify the most profitable industries in the world, and adopt them in their country. C. favor some industries over others. D. control markets that are industrial.