Which of the following examples shows the law of demand?
a. The demand for flashlights remained constant as the price decreased.
b. The demand for avocados remained constant as the price increased.
c. The demand for baseballs increased as the price decreased.
d. The demand for geraniums increased as the price increased.
c. The demand for baseballs increased as the price decreased.
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In the IS-LM diagram, we are in "general equilibrium"
A) at all points. B) at all points on the LM curve. C) at all points on the IS curve. D) only at the intersection of the IS and LM curves.
The permanent income hypothesis highlights the phenomenon of ________
A) the intertemporal budget constraint B) a binding borrowing constraint C) autonomous consumption D) consumption smoothing
The Laffer Curve only applies to income taxes
a. True b. False
The price of input goods changes due to _____________ or _______________ for that particular good.
Fill in the blank(s) with the appropriate word(s).