Suppose the market for guitars "clears" at a price of $500 per guitar. What does the above statement mean?
A) Nothing, if an economist made the statement.
B) Guitars are no longer a scarce good.
C) The plans of guitar buyers and sellers are coordinated.
D) There is no longer a demand for guitars.
C
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Between 1977 and 2004, the inflation-adjusted prices for an array of goods traded between countries __________ while the inflation-adjusted prices for an array of goods not traded between countries _____________________
A) fell; increased. B) rose; increased as well. C) fell; decreased as well. D) rose; decreased.
Which combination of factors would most likely increase aggregate demand?
A. An increase in household indebtedness and a decrease in net exports B. An increase in consumer wealth and a decrease in interest rates C. An increase in personal taxes and a decrease in government spending D. An increase in business taxes and a decrease in profit expectations