How would you interpret (1) an upward sloping curve and (2) a zero slope curve in a two variable diagram?
What will be an ideal response?
(1) Positive slope, where variable Y rises as variable X rises.(2) Zero slope, where the value of Y is the same irrespective of the value of X.
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The purchasing power of money decreases as the price level increases
Indicate whether the statement is true or false
The U.S. National Commission on Fiscal Policy and Reform has recommended changes to government expenditures and taxes which they claim would reduce the increase in the national debt between 2012 and 2020 to $4 trillion rather than $8 trillion
What are the commission's 5 recommendations?
Last year there were 6 pizza shops in town. This year there are only 4. Other things being equal, the decrease in the number of suppliers will
A) cause the market supply curve to shift to the right. B) increase the market demand for pizza. C) cause a decrease in the quantity supplied at each price. D) have no impact on market supply as long as the demand for pizza remains strong.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.