By reducing income taxes, more money is put into the hands of people who will spend part of it on more goods and services. This shifts the aggregate demand curve outward

Indicate whether the statement is true or false

T

Economics

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Soda and peanuts are complements. Other influences on buying plans remaining the same, a rise in the price of soda

A) increases the demand for peanuts. B) decreases the demand for peanuts. C) decreases the demand for soda. D) increases the demand for soda. E) has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts.

Economics

Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 2 cents per page. With no change in demand and technology, in the long run, the price will

A) remain unchanged. B) rise to 5 cents per page. C) rise to 4 cents per page. D) fall to 1 cent per page.

Economics