If a nation experiences severe drought and real risk-free interest rate rises, then:
a. Aggregate demand falls, and aggregate supply rises.
b. Aggregate demand and aggregate supply rise.
c. Aggregate demand and aggregate supply fall.
d. Neither aggregate demand nor aggregate supply change.
e. None of the above.
.C
Economics
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Some economists and policymakers who are in favor of government-provided health care believe that providing health care will generate
A) additional moral hazard. B) positive externalities. C) greater asymmetric information. D) more adverse selection.
Economics
If a firm with two large plants installs a large, custom built assembly line in each of its plants, the custom assembly line is an example of ________.
A) specialized capital B) managerial diseconomies C) a compensating wage differential D) geographic variation
Economics