Which of the following is a component of aggregate demand?
A. Income
B. Taxes
C. Consumption
D. Transfer payments
Answer: C
You might also like to view...
Refer to the above figure for the market of Cheerios. Which diagram depicts the effect of an increase in the price of Cheerios?
A) A B) B C) neither graph D) both graphs
A depreciation of the U.S. dollar
A) makes U.S. exports more expensive in terms of foreign currency and imports less expensive in terms of the dollar, increasing net exports. B) makes U.S. exports less expensive in terms of foreign currency and imports more expensive in terms of the dollar, increasing net exports. C) makes U.S. exports less expensive in terms of foreign currency and imports more expensive in terms of the dollar, decreasing net exports. D) makes U.S. exports more expensive in terms of foreign currency and imports less expensive in terms of the dollar, decreasing net exports.
The market for home-delivered pizza is extremely competitive in Introville, Utah, and prices continue to fall. Assume they have fallen so low that the 20 pizza delivery firms are all suffering economic losses. What will likely happen in the long run?
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Freedonia will now be able to consume a maximum of
a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.