Other Things Constant, a Decrease in Resource Prices Will Lead

question 8

Multiple Choice

Other things constant, a decrease in resource prices will lead to

• A) reduced profits and a reduction in short-run aggregate supply.
• B) increased profits and a reduction in short-run aggregate supply.
• C) reduced profits and an increase in short-run aggregate supply.
• D) increased profits and an increase in short-run aggregate supply.

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Definitions:

Median Voter

A theoretical concept that represents the individual whose preferences are exactly in the middle of the set of all voters' preferences, often used in political science to predict the outcome of elections.

Median-Voter Model

A theoretical model suggesting that the preferred policy of the median voter will win the support of a majority in a democratic election, shaping political outcomes.

Median-Voter Model

A theoretical model in political science that suggests policies will most likely reflect the preferences of the median voter.

Government Involvement

Government Involvement in the economy can include regulation, direct participation in the market, fiscal policies, and other actions intended to influence economic outcomes.