To be certain that exchange between people is mutually beneficial, we generally assume
A) not all people are free to enter the market at will, but once in they are free to make any offer to trade.
B) all people have complete information about each other's preferences.
C) there are no transaction costs.
D) both B and C
E) both A and B
D
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
What role does research and development play in increasing productivity?
What will be an ideal response?
As of 2008, the members of the WTO account for what percentage of world trade?
A) 3 percent. B) 23 percent. C) 57 percent. D) 97 percent
A constitutional amendment requiring the federal government to balance its budget annually would
a. require a decrease in taxes and/or an increase in government spending during an economic expansion. b. require an increase in taxes and/or a decrease in government spending during a recession. c. destabilize the economy. d. All of the above.