An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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Economic growth in Cuba has been slow; what can best explain the slow growth?
A) Lack of economic resources B) Lack of incentive mechanisms and economic freedom C) Labor productivity is low. D) A non-democratic form of government E) Too much competition within the economy
In a market with positive externalities,
A) the efficient level of production is less than what competition will obtain. B) the efficient level of production is equal to what competition will obtain. C) the efficient level of production is more than what competition will obtain. D) there cannot be an efficient level of production.