Which of the following is considered in the AS/AD model but was not considered in the short-run macro model?
a. The effect of price changes.
b. The effect of interest rate changes.
c. Increases in government spending.
d. Monetary policy.
e. Decreases in government spending.
A
Economics
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Suppose that Jean normally orders three tacos, but on seeing that their price has gone up, decides to buy only two. Jean's decision is best explained by:
A) income and substitution effects. C) the principle of comparative advantage. B) the law of supply. D) the law of increasing opportunity costs.
Economics
When state universities charge higher tuition fees to out-of-state students than to local students, the universities are practicing
A) first-degree discrimination. B) second-degree discrimination. C) third-degree discrimination. D) fourth-degree discrimination.
Economics