The aggregate demand curve will shift to the right ________ the initial decrease in taxes
A) by less than
B) by more than
C) by the same amount as
D) sometimes by more than and other times by less than
Answer: B
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The Dow Jones industrial average
a. buys and sells municipal bonds from bond rating agencies b. is a stock exchange that performs IPOs c. was founded on Wall Street in 1926 d. is a stock index consisting of the 30 largest company stocks
Your roommate Hansen argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States. Hansen
A) is incorrect. Free trade raises living standards by increasing economic efficiency. B) is right in asserting the need to protect high wages if the United States wishes to maintain its high standard of living. C) is correct in arguing that the high wages of U.S. workers make it impossible to compete with workers in low-wage countries. D) is advancing the anti-dumping argument for protectionism.