Spending on the war in Afghanistan is essentially categorized as government purchases. How do decreases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will shift the aggregate demand curve to the right.
B) They will shift the aggregate demand curve to the left.
C) They will move the economy up along a stationary aggregate demand curve.
D) They will move the economy down along a stationary aggregate demand curve.
B
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What is one difference between stocks and bonds?
A) Bonds earn a higher rate of return than stocks. B) Stocks earn a higher rate of return than bonds. C) Bonds are purchased at a bank, while stocks are purchased through the federal government. D) Stocks represent partial ownership in a firm, while bonds do not.
The Organization of Petroleum Exporting Countries (OPEC) is an international cartel. If the cartel were to hire a consulting firm to monitor the production rates of member countries, the economic reason for this monitoring is to:
A. Make sure that each member country is producing at an output level at which price equals marginal cost B. Make sure all the member countries produce at least their quotas so that there will be no oil shortage C. Detect those member countries which are depressing prices by producing more than their assigned quotas D. Make sure that the marginal revenue for the last barrel of oil sold by each member country is less than its price