A decrease in aggregate demand, all other things unchanged, will generate _______ in potential output and _______ in the price level.

A. an increase; no change
B. a decrease; no change
C. no change; an increase
D. no change; a decrease

Ans: D. no change; a decrease

Economics

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One of the two criteria for a resource to be considered as a natural resource is that it must:

A) have been produced. B) be found in nature. C) be part of a factory or building. D) not be used to produce goods and services.

Economics

The justification for government action based on the argument that everyone agrees to be coerced if everyone else is forced as well is not compatible with the criterion of Pareto superiority

a. True b. False

Economics