A negative demand shock
a. shifts the AD curve to the right
b. decreases real GDP and increases the price level in the short run
c. is the result of an increase in money demand
d. results in a movement down and to the right along the AD curve
e. decreases both real GDP and the price level in the short run
E
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Refer to the payoff matrix below. If Camp R Us announces that it will offer special financing, Happy Campers ________ believe Camp R Us as their incentives ________ align.
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) should; do not B) should; do
C) should not; do D) should not; do not
Which of the following is an example of a leakage from the circular flow of income and expenditure?
a. Government purchases of goods and services b. Taxes c. Investment d. Exports e. Consumption expenditures
Production quota
What will be an ideal response?
It is likely that people will work less when the marginal tax rate is
A. 91 percent. B. 2 percent. C. 26 percent. D. 30 percent.