If a firm in a perfectly competitive market raises its price
A) it will sell more products.
B) it will sell fewer products.
C) its sales will remain unchanged.
D) it will sell nothing.
Answer: D
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President George W. Bush and congress cut taxes and raised government expenditures in 2003 . According to the aggregate supply and aggregate demand model
a. both the tax cut and the increase in government expenditures would tend to increase output. b. only the tax cut would tend to increase output. c. only the increase in government expenditures would tend to increase output. d. neither the tax cut nor the increase in government expenditures would tend to increase output.
Economists use the term normal good to refer to goods that
a. you consume on a daily basis. b. you consume more of when your income falls. c. you consume more of when your income rises. d. consumers choose the same quantities of regardless of income.