"Employment fell last month to its lowest level in the last six years" is an example of:
a. the fallacy of composition.
b. positive economics

If a "liberal" wanted to decrease aggregate demand, which of the following would she tend to favor?

a. An increase in government spending, because it will increase the size of the public sector. b. A decrease in government spending, because it keeps the public sector small. c. An increase in transfer payments, because it has a larger multiplier than tax changes. d. An increase in taxes, because it makes the public sector larger.

Explain how a market demand curve is constructed

What will be an ideal response?