Which of the following will shift the aggregate demand curve to the right?
A. Income taxes are raised.
B. Business managers become pessimistic about the future.
C. Consumers become pessimistic about the future.
D. The government increases spending on education.
Answer: D
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What factors lead to competitive advantage for a firm?
What will be an ideal response?
(I) Governments that respect property rights and freedom of exchange while following monetary (and fiscal) policies consistent with relative price stability, establish the foundation for economic growth. (II) Governments have often diminished the economic prospects of a nation by levying high taxes, instituting price controls, and following inflationary monetary policies
a. I is true; II is false. b. I is false; II is true. c. Both I and II are true. d. Both I and II are false.