Figure 33-2
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Given the situation in graph (1) in Figure 33-2, what movement would be expected in graph (2) from the economy’s self-correcting mechanism?
A. A to B
B. A to D
C. C to E
D. D to C
Answer: C
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The consumption function expresses the:
a. relation between consumption and dissaving. b. relation between consumption and disposable personal income. c. purposes of consumption. d. relation between consumption and dissaving.
When a country imports more than it exports, it has a:
A. trade deficit. B. trade surplus. C. zero trade balance. D. policy which forbids exportation.
The recessionary gap of the 1990s in Japan led to decreases in the price level
a. True b. False Indicate whether the statement is true or false
A decrease in the price of a good would
a. increase the supply of the good. b. increase the quantity demanded of the good. c. give producers an incentive to produce more to keep profits from falling. d. shift the supply curve for the good to the left.