Which of the following changes shifts the AD curve down and to the left?
A. A decrease in corporate taxes
B. A decrease in consumer confidence
C. A temporary increase in government purchases
D. A rise in the nominal money supply
Answer: B
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The demand for labor curve is
A) upward sloping at potential GDP and downward sloping elsewhere. B) vertical at potential GDP. C) downward sloping. D) upward sloping because firms demand labor.
When the price of raisins falls, the quantity of raisins demanded rises. Explain this change in terms of income and substitution effects
What will be an ideal response?
Labor productivity increases with technological change. Technological change would be which of the following?
a. a company getting new machines b. advances in pure science, such as the discovery of gravity c. invention and innovation d. government policies funding research and development
If the United States changed its laws to allow for the legal sale of a kidney, which of the following is likely to occur?
a. The price of kidneys would rise to balance supply and demand. b. The gains from trade would make both buyers and sellers better off. c. Thousands of lives would be saved. d. All of the above are correct.