In the diagram, a shift from AS 2 to AS 3 might be caused by a(n):
A. decrease in interest rates.
B. increase in business taxes and costly government regulation.
C. decrease in the prices of domestic resources.
D. decrease in the price level.
B. increase in business taxes and costly government regulation.
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Use the following list of factors that are related to the aggregate demand curve to answer the next question.1) Real-Balances Effect2) Household Expectations3) Interest-Rate Effect4) Personal Income Tax Rates5) Profit Expectations6) National Income Abroad7) Government Spending8) Foreign Purchases Effect9) Exchange Rates10) Degree of Excess CapacityWhich of the above factors best explain the downward slope of aggregate demand curve?
A. 7, 9, and 10 B. 4, 6, and 7 C. 2, 4, and 6 D. 1, 3, and 8
In an economy with no income taxes or imports, if the multiplier is 5, what does the MPC equal?
A) 0.9 B) 0.2 C) 0.4 D) 0.8 E) 0.5
Which of the following is a positive effect of free trade?
a. Buyers face fewer choices in the marketplace. b. Global competition helps to keep prices down. c. Producers encounter fewer economies of scale. d. Some nations operate as closed economies.
The marginal benefit of you going to a movie during the week is currently $6. Assume that the $4 price of going to the movies measures its marginal cost. Following the economic decision rule, you will:
A. continue going to movies until the marginal benefit of doing so falls to zero. B. not be able to enjoy a net gain from going to the movies during the week. C. continue going to movies until the marginal benefit of doing so falls below $4. D. choose not to go to any movies during the week.