The real wealth and the real interest rate effects are both causes of the downward slope of the aggregate demand curve
a. True
b. False
Indicate whether the statement is true or false
True
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Economists using marginal utility theory assume that consumers' objectives are to
A) maximize their total utility. B) maximize their marginal utility. C) maximize their income. D) none of the above.
A theory suggesting that price stickiness leads to sluggish short-run adjustment of the price level to variations in aggregate demand is known as
A. real-business-cycle inflation dynamics. B. real-business-cycle fixed-price business cycles. C. new Keynesian flexible-price business cycles. D. new Keynesian inflation dynamics.
The paramount goal of a firm is to
A) maximize profit. B) maximize sales. C) maximize total revenue. D) minimize costs. E) force its competitors into bankruptcy.
If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease. B) equality of incomes would increase but efficiency would decrease. C) efficiency would increase but equality of incomes would decrease. D) efficiency and equality of incomes would both increase.