According to the classical theory, the aggregate supply curve is
A) downward sloping. B) upward sloping.
C) vertical. D) horizontal.
C
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Which of the following does not usually occur when there is an increase in government spending?
a. Government purchases crowd out private-sector spending. b. Total spending decreases. c. The interest rate increases. d. Investment spending declines. e. Household saving increases.
Suppose quantity demanded is given by Qd = 100 - P, and quantity supplied is given by Qs = 20 + 3P. In this case, equilibrium price, P*, and equilibrium quantity, Q*, are as follows:
A. P*= 80, Q*= 20 B. P*= 20, Q*= 80 C. P*= 10, Q*= 90 D. P*= 40, Q*= 140
A local retailer has decided to carry a well-known brand of shampoo. The marketing department tells them that the quarterly demand by an average man is: Qd = 3 - 0.25P and the quarterly demand by an average woman is: Qd = 4 - 0
5P The market consists of 10,000 men and 10,000 women. How may bottles of shampoo can they expect to sell if they charge $6 per bottle? A) 20,000 B) 33,000 C) 25,000 D) 10,000 E) none of the above
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.