If the price of a haircut (a normal good) increases, other things constant, the
a. demand for haircuts increases
b. demand for haircuts decreases
c. quantity demanded of haircuts decreases
d. quantity demanded of haircuts increases
e. demand for haircuts, or quantity demanded of haircuts decreases; they are the same thing
C
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In the new classical view, an anticipated decrease in government spending would be expected to
a. lower output and the price level. b. lower output but leave the price level unchanged. c. leave output unchanged and raise the price level. d. leave output unchanged and lower the price level. e. leave both output and the price level unchanged.
By definition, exports are
a. limits placed on the quantity of goods brought into a country. b. goods in which a country has an absolute advantage. c. people who work in foreign countries. d. goods produced domestically and sold abroad.