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Which of the following helps explain why the aggregate quantity demanded of goods and services is inversely related to prices within the framework of the AD/AS model?
a. As prices fall, domestic consumers have an incentive to buy more of the cheaper goods and services.
b. As prices fall, the monetary authorities will have to increase the money supply, which will lead to an increase in the quantity of goods and services purchased.
c. As prices fall, the government will have to reduce taxes, which will lead to an increase in the quantity of goods and services purchased.
d. As prices fall, the wealth of people holding the fixed quantity of money increases, causing them to expand their purchases of goods and services.
compare 2 policies to curb pollutionqs10p amp qd100-10ppollution costs 2.50galloncalculate price quantity and social
In the late eighteenth century, the price of bread in New York City was controlled, set at a predetermined price above the market price. Draw a diagram showing the effect of the policy. Did the policy act as a price ceiling or a price floor?
No additional working capital is needed and no working capital will be returned. If your tax rate is 35% and you require a 14% return on your investment, what bid price should you submit?
You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for Highlander is Q = 80,000 −1.2P, what price should you charge in order to maximize revenue from sales of the Highlander?
Assume the annual demand for liquor in Mississippi. The supply of liquor is given by the equation Qs= 30,000P. Solve for the equilibrium annual quantity and price of liquor.
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
How are the different dimensions of globalization - economic, political, cultural, ecological - connected?
How do you use indifference curve analysis to explain the price ; income and substitution effects and to demonstrate the delegation of the demand curve for different types of goods
Competition in the market is such that each of the firms independently produces a quantity of output.
A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is the inflation-adjusted rate of return per year? the real rate of return per year?
Five annual deposits in the amounts of $7,500, $6,000, $4,500, $3,000, and $1,500, in that order, are made into a fund that pays interest at a rate of 8% compounded annually. Determine the amount in the fund immediately after the fifth deposit.
You have made an important presentation to several Japanese executives regarding a proposed partnership between your American company and their Japanese firm. The Japanese executives were very silent during the presentation. Most people in the United..
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