When the AE curve shifts upward because the price level falls, the corresponding effect on the aggregate demand curve is
A) a shift rightward of the aggregate demand curve.
B) a movement upward along the aggregate demand curve.
C) a shift leftward of the aggregate demand curve.
D) a movement downward along the aggregate demand curve.
E) nothing because aggregate demand does respond to changes in the price level.
D
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The demand and supply schedules for pizza are in the table above. A price ceiling of $2 per slice results in
A) a surplus of 20 slices of pizza. B) a shortage of 20 slices of pizza. C) a shortage of 40 slices of pizza. D) a shortage of 60 slices of pizza. E) neither a shortage nor a surplus.
Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. At a price of $55, the quantity demanded in the market would be
A) 42 oz. B) 136 oz. C) 178 oz. D) 233 oz.
The aggregate supply curve will shift to the right when the:
a. amount of labor in the society decreases. b. capital stock of the society shrinks. c. amount of natural resources in the society gets smaller. d. amount of labor in the society increases. e. price level in the economy rises.
Which of the following could cause a decrease in labor supply?
a. An increased preference for working in the labor market b. An increase in the number of two-family households c. An increased preference for enjoying leisure time d. A trend toward less schooling and toward earlier entrance into the labor market e. An increase in the retirement age