Which of the following causes the aggregate supply curve to shift to the left, ceteris paribus?
A. An increase in the cost of labor
B. A decrease in the money supply
C. An increase in government spending on goods
D. A decrease in interest rates
A. An increase in the cost of labor
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When graphing the demand curve:
A. quantity goes on the horizontal axis and price goes on the vertical axis. B. quantity goes on the vertical axis and price goes on the horizontal axis. C. both quantity and price go on the horizontal axis. D. it doesn't matter which axis price and quantity are placed on.
A good economic theory or model weeds out unimportant facts from important ones. This process is called ______.
a. abstraction b. reflection c. correlation d. specialization
Monetizing the deficit contributes to the inflationary pressures that are already present in the economy.
Answer the following statement true (T) or false (F)
If the managers of Happy Avocados, a ready-made guacamole firm, spend considerable time researching different prices and quality measures offered by multiple avocado farmers, the time spent is considered to be a(n) ________ cost.
A) information B) negotiation C) monitoring D) enforcement