The aggregate demand curve will shift to the left if
A. the nation's exports decrease.
B. a reduction in the price level pushes down borrowing costs.
C. people are more optimistic about their future.
D. government expenditures increase.
Answer: A
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Full employment corresponds to
A) equilibrium in the labor market, with actual GDP being equal to potential GDP. B) labor demand being greater than labor supply and actual GDP being equal to potential GDP. C) being at the point where the marginal product of labor equals zero. D) equilibrium in the labor market, and actual GDP exceeding potential GDP.
When the price of perfume changes from $24 to $26, the quantity supplied increases from 100 jars to 150 jars. What is the elasticity of supply of perfume?
A) 0.04 B) 25.0 C) 5.0 D) 0.2
Why are climate and environmental quality considered to be public goods? What are the implications?
What will be an ideal response?
The reason that opportunity costs arise is that
A. people have unlimited wants. B. there are no alternative decisions that could be made. C. an economy relies on money to facilitate exchange of goods and services. D. resources are scarce.