Suppose the marginal propensity to consume is 0.75. A $150 billion increase in government spending shifts the IS curve
A) to the right by $50 billion.
B) to the left by $50 billion.
C) to the left by $600 billion.
D) to the right by $600 billion.
D
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If both the supply and demand curves shift to the left, then we can conclude that there will be a(n): a. increase in the equilibrium quantity sold. b. decrease in the equilibrium quantity sold. c. increase in the equilibrium price
d. decrease in the equilibrium price.
In 1820 the country with the highest per capita GDP was ______________________. In 1900 the country that ranked #1 in terms of per capita GDP was ___________________ and fifty years later the top ranking was held by _________________________
A) the Netherlands; New Zealand; the United States. B) the Netherlands; Australia; Switzerland. C) the United States; the United States; the United States. D) Austria; Australia; New Zealand.
If a firm in a monopolistically competitive market has a demand curve that is shifting to the right, it will only stop shifting when:
A. the firm's price is equal to its average total costs. B. the firm is earning zero economic profits. C. other firms have no incentive to leave the market. D. All of these statements are true.
If the market demand decreases for a good sold in a perfectly competitive market, firms in the market:
A. will be able to charge a higher price for their product. B. will receive a lower price for their product. C. will not be able to change their price. D. will not be affected by the change in demand.