Only a change in the price level can cause a movement from one point to another point along a given aggregate demand curve
Indicate whether the statement is true or false
True
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If the government implements a price ceiling on insulin, this will have all of the following effects on the market for insulin except
A) an increase in deadweight loss. B) a decrease in producer surplus. C) a more efficient equilibrium. D) a decrease in economic surplus.
Suppose a tax on buyers has been imposed in the graph shown. Once the tax is in place, the sellers experience:
A. a decrease in supply.
B. an increase in supply.
C. a decrease in quantity supplied.
D. an increase in quantity supplied.
Bill is restoring a car and has already spent $4000 on the restoration. He expects to be able to sell the car for $6200 . Bill discovers that he needs to do an additional $2400 of work to make the car worth $6200 to potential buyers. He could also sell the car now, without completing the additional work, for $3800 . What should he do?
a. He should sell the car now for $3800. b. He should keep the car since it wouldn't be rational to spend $6400 restoring a car and then sell it for only $6200. c. He should complete the additional work and sell the car for $6200. d. It does not matter if Bill sells the car now or completes the work and then sells it at the higher price because the outcome will be the same either way.
The defining features of business cycles is that they
A. are inherently bad B. represent the underlying trend of real GDP C. are fluctuations about trend of real GDP D. measure prospects for future growth in the economy