Investment is:
a) An injection that increases aggregate demand
b) A withdrawal that increases aggregate demand
c) An injection that decreases aggregate demand
d) A withdrawal that decreases aggregate demand
Answer: a) An injection that increases aggregate demand
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Government payment of a per-unit subsidy for medical care causes the out-of-pocket price that consumers pay for care to be
A) less than the price that producers receive for providing care. B) greater than the price that producers receive for providing care. C) greater than the market clearing price without the subsidy. D) equal to zero.
Joe has broken the mirror of my car. I have legal recourse to sue for damages because of
A) social costs. B) transactions costs. C) common property rights. D) private property rights.