During a boom expansionary economy, public assistance payments and unemployment compensation payments automatically decrease while income taxes automatically increase. Which of the following best describes the effect of these changes on aggregate demand?
a. Aggregate demand will be less than it would be without these automatic stabilizers.
b. Aggregate demand will be the same as it was before

In response to a shortage the market price of a good will rise; as the price rises, the demand will decrease and supply will increase until equilibrium is reached

Indicate whether the statement is true or false

The gift exchange motive suggests that

A) workers value benefits like health insurance more than job security. B) workers prefer a nice work environment, even if they must accept lower wages. C) workers who feel well treated will work harder and more efficiently. D) workers will shirk if they are paid a low wage.