A demand-pull inflation consists of ________ shifts in the AD curve and ________ shifts in the AS curve
A) right; no
B) leftward; leftward
C) leftward; rightward
D) rightward; leftward
E) rightward; rightward
D
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A shift of the supply curve of oil raises the price from $70 a barrel to $80 a barrel and reduces the quantity demanded from 40 million to 38 million barrels a day. You can conclude that the
A) demand for oil is elastic. B) demand for oil is inelastic. C) supply of oil is elastic. D) supply of oil is inelastic.
________ describes the relationship between consumption spending and disposable income
A) The liquidity trap B) The consumption function C) Household wealth D) The paradox of thrift
A perfectly elastic demand implies that
a. buyers will not respond to any change in price. b. any rise in price above that represented by the demand curve will result in a quantity demanded of zero. c. quantity demanded and price change by the same percent as we move along the demand curve. d. price will rise by an infinite amount when there is a change in quantity demanded.
The multiplier effect
a. and the crowding-out effect both amplify the effects of an increase in government expenditures. b. and the crowding-out effect both diminish the effects of an increase in government expenditures. c. diminishes the effects of an increase in government expenditures, while the crowding-out effect amplifies the effects. d. amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects.