Laws that make it difficult to start a new business lead to a
A) high rate of economic growth.
B) low rate of economic growth.
C) more political freedom.
D) laissez-faire.
B
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The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of
A) a decrease in the quantity demanded of cereal because of the substitution effect. B) an increase in the quantity demanded of eggs because of the income effect. C) a decrease in the quantity supplied of cereal because of the substitution effect. D) an increase in the quantity supplied of eggs because of the income effect.
The aggregate demand curve illustrates the relationship between ________ and the ________, holding constant all other factors that affect aggregate expenditure
A) the inflation rate; quantity of planned aggregate expenditure B) the price level; quantity of consumption expenditure C) the price level; quantity of planned aggregate expenditure D) the price level; quantity of planned investment expenditure