Which of the following is a reason why aggregate supply decreased following the housing bubble collapse?
A. Businesses could not access credit to carry out their daily operations.
B. Consumption decreased.
C. People stopped investing in homes.
D. Government tax rates were altered as a response to change in aggregate output.
A. Businesses could not access credit to carry out their daily operations.
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A point outside the production possibilities curve [PPC]:
a. represents inefficient use of resources. b. represents the prevalence of unemployment. c. is attainable if all resources are used efficiently. d. represents more resources than are currently available. e. will never be attainable, even if the quantity of resources increases.
A trade surplus provides a measure of the gap between exports and imports
a. True b. False Indicate whether the statement is true or false
Suppose that the demand for digital cameras is elastic, and the supply of digital cameras is inelastic. A tax of $20 per camera levied on digital cameras will decrease the effective price received by sellers of digital cameras by
a. less than $10. b. $10. c. between $10 and $20. d. $20.
In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to an increase in the equilibrium level of ________
A) investment; consumption B) consumption; investment C) net exports; investment D) all of the above E) none of the above