Figure 3-3
In , if the initial demand for margarine were D1, the impact of a decrease in the price of butter, a substitute good for margarine, would be illustrated as
a.
a shift in the demand curve to D2.
b.
a shift in the demand curve to D3.
c.
a movement downward to the right along the original demand curve D1.
d.
none of the above.
b
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If the inflation rate is decreasing while unemployment is decreasing: a. the short-run Phillips curve must have shifted right
b. the short-run Phillips curve must have shifted left. c. it involved a movement along the short-run Phillips curve. d. it would be inconsistent with any possible Phillips curve scenario.
The narrowest definition of the money supply, including cash and checking deposits, is known as
A. M0. B. M1. C. M payments. D. currency. E. real-value money.
In the market for saving, the price is the:
A. relative price. B. nominal interest rate. C. inflation rate. D. real interest rate.
SeaSide Industries currently spends 5 percent of its sales on advertising. Suppose that the elasticity of advertising for Seaside is 0.2. Determine the optimal profit margin over price (P ? MC)/P.
A. 4 percent B. 25 percent C. 10 percent D. None of the answers is correct.