According to Baumol and Blinder, from the demand side a decrease in the price level causes aggregate expenditures to
a. fall, resulting in a lower level of equilibrium income.
b. fall, resulting in a higher level of equilibrium income.
c. rise, resulting in a higher level of equilibrium income.
d. rise, resulting in a lower level of equilibrium income.
c
Economics
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When you hire a company to paint your house, you cannot be sure of the quality of paint that was used. This situation is an example of
a. moral hazard. b. the adverse selection problem. c. the market for lemons. d. the principal-agent problem.
Economics
Related to the Economics in Practice on p. 447: In the U.S. from 1955 to 1996, the labor force participation rate increased for ________ and decreased for ________.
A. men; women B. white men; African American men C. women; men D. African American women; white women
Economics