When government intervenes in the production process because external benefits exist, it typically attempts
A) to impose a tax on each unit produced.
B) to shift the market's demand curve to the left.
C) to shift the market's demand curve to the right.
D) to shift the market's supply curve to the left.
Answer: C
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Which of the following would be considered a negative real supply shock?
A) a relaxation of government environmental regulations B) a permanent increase in the price of energy C) a decrease in the money supply D) a decrease in aggregate demand
Which of these economic changes was observed during the Great Depression?
a. A fall in the domestic price level leading to an increase in import demand b. A fall in resource prices leading to an increase in aggregate supply c. An increase in unemployment leading to a decrease in the aggregate demand d. An increase in the domestic price level leading to an increase in export demand e. An increase in real GDP leading to an increase in the real interest rate