An example of an aggregate demand externality is
A) the costs that aggregate demand changes impose on third parties.
B) as long as total nominal demand is fixed, the economy as a whole benefits more by one firm's reduction in price than that one firm does.
C) as long as total nominal demand is fixed, the economy as a whole is adversely affected by one form's reduction in price than that one firm is.
D) the pollution caused by a chemical factory that is not captured in the costs of the chemicals.
Correct Answer:
Verified
Q31: Real business cycle theorists tend to argue
Q32: The existence of real business cycle theory
Q33: The part of modern macroeconomics that is
Q34: Since at least the 1930s, the mainstream
Q35: New Keynesian Economics suggests each of the
Q37: In the standard view, fiscal deficits
A) stimulate
Q38: In the standard view, fiscal surpluses
A) contract
Q39: In the standard view, fiscal debts and
Q40: According to Ricardian Equivalence
A) the effect of
Q41: Each of the following is a problem
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents