Refer to the diagram. If the initial aggregate demand and supply curves are AD 0 and AS 0 , the equilibrium price level and level of real domestic output will be:
A. F and C, respectively.
B. G and B, respectively.
C. F and A, respectively.
D. E and B, respectively.
A. F and C, respectively.
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Under which of the following circumstances might a gallon of water be more valuable than a flawless one carat diamond? a. At a diamond shop next door to a clean public drinking fountain
b. At a diamond shop next door to a typical grocery store selling bottled water. c. In any U.S. city with safe, clean drinking water. d. In a life raft with 8 passengers who have been adrift on a remote part of the Pacific Ocean for a week with few prospects of an immediate rescue.
An example of the command-and-control approach to environmental policy is:
a. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). b. requiring car producers to install new air conditioners that do not use freon. c. allowing coal producers to buy and sell permits to allow CFC emissions. d. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard.
Why are nonprofit institutions counted as businesses in the circular flow?
What will be an ideal response?
An appreciation of the Japanese yen would shift the Japanese aggregate demand curve inward
a. True b. False Indicate whether the statement is true or false