A tax increase
A) decreases aggregate demand and the AD curve shifts leftward.
B) increases aggregate demand and the AD curve shifts rightward.
C) decreases the quantity of real GDP demanded and there is a movement up along the AD curve.
D) increases the quantity of real GDP demanded and there is a movement down along the AD curve.
E) does not shift or lead to a movement along the aggregate demand curve.
A
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Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment
What price will the Busy Bee charge to maximize its profit? A) $5.00 for a hamburger B) $3.00 for a hamburger C) $2.00 for a hamburger D) $1.00 for a hamburger E) $4.00 for a hamburger
Refer to the scenario above. If the rules of the gamble are changed such that in the case of heads, the individual wins $50, and in the case of tails, the individual loses $100, the expected value of the gamble changes to:
A) $25. B) -$25. C) $50. D) -$50.