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1. A decrease in aggregate demand is seen as a(n):
upward movement along the aggregate demand curve.
downward movement along the aggregate demand curve.
shift to the left in the aggregate demand curve.
shift to the right in the aggregate demand curve.
2. The economy is in a recession. Which of the following is a fiscal policy that the government should adopt to strengthen the economy?
A decrease in government transfer payments.
An increase in government purchases of goods and services.
A decrease in interest rates.
An increase in tax rates.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change. Does your answer depend on the marginal propensity to consume.
1.outline a plan that will assess the effectiveness of the market structure for the companys operations.2.suppose the
What type of externalities arise from driving automobiles fueled by gasoline and what is your view on whether the United States should raise the gas tax to the European level and why?
buildingone properties is a limited partnership formed with the express purpose of investing incommercial real estate.
part of a workers pay on an automobile assembly line is based on the number of cars in a pay period that come off the
Analyze the impact of an increase in the minimum wage from the current level to $15 per hours. How would the following be affected? employment of people previously earning less than $15 per hour
Consider a Bertrand model in which the above firms choose prices to post P_A and P_B simultaneously. Since the goods are identical, consumers will go to the firm with the cheaper price.
Summary of the news story and explain how it relates to the material
Using the criteria of efficiency, define the ways a market may fail and explain how government regulation can offset the problems caused by market failure.
Antitrust Practices and Market Power
TC=0.2Q^2-5Q+30(Q^2 means Q square) a) What is its corresponding marginal cost curve b) If the firm faces a price of $6 per unit, what quantity should it sell c) What profit does the firm make at this price d) Should the firm shut down
A restaurant with $1 million in annual sales has costs of $350,000 in wages, $450,000 for food, utilities and other supplies, and $100,000 in rent. How much is this restaurant contributing to GDP?
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