Economics

How does aggregate demand curve (AD) differ from an individual demand

How does aggregate demand curve (AD) differ from an individual demand curve (D)? A) AD is generally vertical while D is usually downward sloping. B) D represents the price-quantity relationship for a single good or service while AD looks at the entire economic system. C) AD is generally a downward sloping curve while D usually […]

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Date: September 2nd, 2020

Fiscal policy is defined as A) the discretionary changing of governme

Fiscal policy is defined as A) the discretionary changing of government expenditures and/or taxes to achieve national economic goals. B) the design of a tax system to transfer income from the rich to the poor. C) the use of the taxing power of the government to redistribute wealth in a socially acceptable manner. D) the […]

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Date: September 2nd, 2020

Suppose the market for cement is such that the government does not int

Suppose the market for cement is such that the government does not interfere in price determination but plays an important role in the provision of property rights. While there are a large number of buyers and sellers, everyone conducts transactions at a common market price. Which of the following statements is true about the structure […]

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Date: September 2nd, 2020

Which of the following is a discretionary fiscal policy action? A) a

Which of the following is a discretionary fiscal policy action? A) a progressive tax system that leads to an increase in income tax revenues during an economic boom B) a deliberate tax cut when the economy experiences high unemployment C) an increase in the amount of unemployment compensation because more people become unemployed D) an […]

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Date: September 2nd, 2020

Along a linear consumption function, A) the average propensity to con

Along a linear consumption function, A) the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income. B) the marginal propensity to consume rises with an increase in income. C) the average propensity to consume falls with an increase in income. D) both the average propensity […]

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Date: September 2nd, 2020