The approach to understanding the determination of real GDP and the price level that emphasizes incomplete adjustment in the prices of many goods is
A. the Keynesian model.
B. the aggregate demand model.
C. the classical model.
D. Say's law.
Answer: A
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Which of the following would shift the aggregate demand curve to the right?
a. Increases in government purchases, investment spending, autonomous consumption, taxes, or the money supply b. Increases in government purchases, investment spending, autonomous consumption, or the money supply c. Decreases in government purchases, investment spending, autonomous consumption, taxes, or the money supply d. Increases in government purchases, investment spending, autonomous consumption or taxes e. Decreases in government purchases or investment spending, and increases in autonomous consumption, taxes, or the money supply
Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor,
a. quantity demanded decreases. b. quantity supplied increases. c. there is a surplus. d. All of the above are correct.
In a typical production function, the relevant factors of production are land, labor, capital, and
A. resources. B. raw materials. C. technology. D. entrepreneurship.
Extraction costs of a nonrenewable resource include the:
A. cost of removal from the ground only. B. cost of removal from the ground plus the cost of preparation for sale. C. cost of removal from the ground, the cost of preparation for sale, and the cost of not being able to extract and sell the resource in the future. D. cost of removal from the ground plus replanting costs.