Draw a graph showing a line with a positive slope. Draw a graph showing a line with a negative slope. Explain what the shape of these lines implies about the relationship between the variable on the x-axis and the variable on the y-axis?
What will be an ideal response?
The graph of the line with the positive slope should be upward sloping, while the graph of a line with a negative slope should be downward sloping. When the line is upward sloping, this implies that as the variable on the x-axis increases the variable on the y-axis also increases. These two variables move in the same direction. When the line is downward sloping, this implies that as the variable on the x-axis increases the variable on the y-axis decreases. The two variables move in opposite directions.
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A) a planned increase in inventories. B) a planned decrease in inventories. C) an unplanned decrease in inventories. D) an unplanned increase in inventories. E) an unplanned decrease in the price level.
Firms in perfect competition produce the productively efficient output level in the short run and in the long run
Indicate whether the statement is true or false
If the inflation rate was 8%, and the tax rate was 20%, and you deposited money in a bank account that pays 12%, what is your after tax real interest rate? Show you work
If an economy is operating at short-run equilibrium below the level of real GDP, the self-correction model result is that:
A. unemployment increases. B. unemployment falls. C. cyclical unemployment increases. D. frictional and structural unemployment increase.