In this graph, at point PL1, price level is ______.
a. high because of a recession
b. low because of a recession
c. unsustainable in the short run
d. unsustainable in the long run
b. low because of a recession
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If supply and demand both decrease, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. lower; lower B. higher; higher C. lower; uncertain D. uncertain; lower
Refer to Figure 2-6. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A) 60 thousand spoons B) 46 thousand forks C) 16 thousand spoons D) 12 thousand forks
The number of U.S. households with access to the Internet has grown is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather:
A. more information because the Internet has lowered the cost of gathering information. B. less information because the Internet has increased the benefit of gathering information. C. less information because the Internet has lowered the cost of gathering information. D. more information because the Internet has increased the cost of gathering information.
When individuals spend all of an income increase, the marginal propensity to save is zero.
Indicate whether the statement is true or false.