The aggregate demand curve would shift to the left if
A) government spending were increased.
B) net taxes were increased.
C) the money supply were increased.
D) the cost of energy were to decrease.
Answer: B) net taxes were increased.
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Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop. The acreage he previously devoted to tomatoes and pumpkins will be converted to field corn that is harvested by machines
Of the following, which could have led to the shift from labor intensive tomato production to field corn? A) The market price of tomatoes increased. B) Farm workers' reservation wage fell. C) The wage rate for farm workers increased. D) All of the answers are true.
Intense market competition is ________ for consumers, since it_______
a. Bad; erodes producer surplus b. Bad, increases variety in the market c. Good, increases the price level in the market d. Good; decreases the price level in the market