A lower domestic price level tends to:
a. reduce aggregate expenditures and lower the aggregate quantity of goods and services supplied.
b. reduce aggregate expenditures and lower aggregate demand.
c. reduce aggregate expenditures and raise aggregate demand.
d. increase aggregate expenditures and raise the aggregate quantity of goods and services demanded.
e. increase aggregate expenditure on foreign goods and lower net exports.
Question 2
When making decisions, economists believe that individuals act rationally if they:
a. seek to improve their own situations and not try to anticipate future consequences of their actions.
b. only pursue the goals of the community.
c. people do the best they can, based on their values and information, under current and future circumstances.
d. always choose alternatives that offer the greatest financial reward.
Effect of Perceived Price of a Drug on Placebo Analgesia
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