The Passage of New Legislation Requiring More Extensive Government Regulation

question 40

Multiple Choice

The passage of new legislation requiring more extensive government regulation of business will most likely:

• A)increase aggregate demand.
• B)increase aggregate supply.
• C)decrease aggregate demand.
• D)decrease aggregate supply.

---

Definitions:

Relatively Cheap

A term used to describe goods or services that are considered to be priced lower than their perceived value or compared to alternative options.

Prospect Theory

A psychological theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

"Low Fat" Sour Cream

Sour cream that has been modified to contain a lower fat content than traditional sour cream.

Dairy Barn

A specific type of barn used primarily for housing dairy cows and equipment for the production of milk.