A prominent aspect of the Great Depression of the 1930s, but not of the recent Great Recession, is ________

Which of the following likely occurs when households and firms become more pessimistic?

a. increased spending b. increased aggregate demand c. increased real GDP d. an increase in the unemployment rate

Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price). If Ingrid finds someone who is willing to sell her a ticket for $70, she should:

A. purchase the ticket even though doing reduce total economic surplus. B. not purchase the ticket because it is overpriced. C. not purchase the ticket because the cost to the scalper was only $60. D. purchase the ticket because doing so will make her $5 better off.