If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in
A) a price of zero.
B) an increase in price.
C) a decrease in price.
D) no change in price.
D
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Economists first began studying the relationship between changes in aggregate expenditures and changes in GDP
A) at the end of the Civil War. B) during the Great Depression. C) during the Industrial Revolution. D) in the 1950s.
The supply-and-demand model may not be appropriate in markets with large transaction costs
What will be an ideal response?
A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?
a. The United States should not restrict employers from outsourcing work to foreign countries. b. The United States should withdraw from the North American Free Trade Agreement (NAFTA). c. The United States should eliminate agricultural subsidies. d. Local and state governments should eliminate subsidies to professional sports franchises.
In the long run, the output is determined by
A. demand-C,I,G,NX B. available factors of production - capital, labor, etc. C. interest rates D. quantity of money