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Suppose that a market basket of two goods is changed by adding more to one of the goods and subtracting one unit from the other.
a) The consumer will rank the market basket more highly after the change.
b) The consumer will rank the market basket less highly after the change.
c) The consumer will be indifferent between the market baskets.
d) Any of the above statements may be true.
a) What would we expect this to do to aggregate demand? What component of AD (C, I, etc.) would the tax rebate impact most directly? Explain why. b) Is this an example of the use of fiscal policy or monetary policy?
The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil market into turmoil[leading to] the lowest price for domestic crude oil since June 1990." a. Why were the members of OPEC..
Consider the marketplace for personal computers. Suppose that the demand is stable: the demand curve doesn't change.
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chemco corporation is a chemical company. the research and development manager is trying to decide whether or not to
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