Which of the following would cause aggregate demand to decrease?
A) The government increases taxes on both business and personal income.
B) A drop in the foreign exchange value of the dollar
C) The Fed increases the amount of money in circulation.
D) Businesses and households believe that the economy is headed for good times, so they begin to feel increased security about their jobs.
A
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Suppose a monopolist cannot price discriminate. To maximize profit, it will
a. always produce in the inelastic range of its demand curve b. never produce in the elastic range of its demand curve c. never produce in the inelastic range of its demand curve d. never produce in the elastic range of its marginal cost curve e. produce in the elastic range of the marginal revenue curve
Ceteris paribus, a decrease in the price of a good will cause the
a. quantity demanded of the good to decrease. b. quantity supplied of the good to increase. c. producer surplus derived from the good to decrease. d. supply of the good to decrease.