Use the following graph of the demand for coffee to answer the question below.
Refer to the three demand curves for coffee. Which of the following would shift the demand for coffee from D1 to D3?
A. an increase in income if coffee is a normal good
B. an expected decrease in the price of coffee in the future
C. a decrease in the price of coffee
D. an increase in the number of buyers of coffee
Answer: B
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The Cost-Benefit Principle predicts that a person:
A. should take an action if its cost increases. B. is more likely to take an action if its cost increases. C. is more likely to take an action if its benefit increases. D. should take an action if its benefit increases.
Graphically an increase in the short-run aggregate supply line represents a(n) ________, and a shift leftward of the long-run aggregate supply line represents a(n) ________.
A. adverse inflation shock; shock to potential output B. favorable inflation shock; shock to potential output C. shock to potential output; favorable inflation shock D. shock to potential output; adverse inflation shock
________ discourage low-risk individuals from seeking health insurance
A) Low premiums B) High premiums C) High costs of medical treatment D) Low interest rates
Make use of the quantity equation to answer the following problem. If the Fed increases the money supply by 4%, velocity increases by 1%, and economic growth is 3%, by how much will the price level increase?
What will be an ideal response?