Identify four changes in the economy that would cause the aggregate demand curve to decrease (shift to the left)
The aggregate demand curve might be shifted to the left (a decrease) because of a decrease in consumption spending because of higher income taxes, a fall in consumer confidence or a reduced stock market wealth. Aggregate demand could also shift left if investment decreased due to higher real interest rates or a pessimistic economic outlook. Aggregate demand could also be decreased through a reduction in government purchases, or transfer payments. If net exports fell, this would also decrease aggregate demand.
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The government agency that provides insurance for all checkable deposits up to $100,000 in banks choosing its protection is the:
a. Federal Deposit Insurance Corporation. b. Federal Reserve. c. Office of Management and Budget. d. Treasury. e. Securities and Exchange Commission.
Any movement along an existing production possibilities curve will
a. increase the production of one good while decreasing the production of the other. b. increase the production of both goods c. increase efficiency. d. increase employment.
A foundation of planned socialism is:
a. the rule of law b. the median voter rule c. the primacy of horizontal transactions d. free pricing e. material balances
In a perfectly competitive market the term "price taker" applies to
A) sellers but not buyers. B) only the smallest sellers and buyers. C) buyers but not sellers. D) sellers and buyers.