Which of the following refers to a shift in the demand curve?
A) "This new advertising campaign should really increase our demand."
B) "Let's drop our price to increase our demand."
C) "We dare not raise our price because our demand will drop."
D) "If new sellers enter the market, the demand for the product is bound to increase."
A
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If the cyclical rate of employment equals -1 percent and the actual rate of unemployment equals 8 percent, then the natural rate of unemployment must equal:
A. 7 percent. B. 12.5 percent. C. 9 percent. D. -7 percent.
In Macroland autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The vertical intercept of the aggregate expenditures model line is
A. 290. B. 0.25. C. 0.75. D. 320.
Refer to the accompanying figure. If the price of a latte increases from $2.00 to $2.50:
A. total expenditure would decrease. B. the change in total expenditure, if any, would depend on the supply curve. C. total expenditure would increase. D. total expenditure would stay the same.
Suppose John earns $10,000 and James earns $200,000. Which of the following statements is false concerning their Social Security taxes?
A. Both will pay a Social Security tax. B. John will pay Social Security tax on all of his income. C. James will pay Social Security tax on the majority of her income. D. James will pay Social Security tax at a higher average rate than will John.