The only way by which government can affect aggregate demand is ...

[student77]

The only way by which government can affect aggregate demand is through changes in its own purchases.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If a monopsony finds that its MRP is greater than its MFC, it:
 a. is doing the right thing to maximize profits.
  b. should hire fewer workers to increase profits.
  c. should hire more workers to increase profits.
  d. should pay the workers a lower wage.
  e. should produce less output.

[Alyson.hiatt@yahoo.com]

Answer to Question 1

False

Answer to Question 2

c