When the rate of interest rises, the resulting change in the demand for capital is shown graphically by:
a. a movement down along the demand curve.
b. a rightward shift of the demand curve.
c. a leftward shift of the demand curve.
d. a movement up along the demand curve.
e. an outward rotation of the demand curve.
c
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Refer to Figure 7.1. In equilibrium, the real wage is ________ and the amount of labor employed is ________
A) Y; B B) X; C C) Y; C D) Z; C
Decisions regarding purchases and sales of securities by the Fed are made by: a. FDIC
b. Discount Committee. c. Federal Open Market Committee. d. Federal Funds Committee.
Which of the following always decreases as output increases?
a. ATC b. MC c. AFC d. TC e. TVC
When the price of a good is higher than the equilibrium price,
a. a shortage will exist. b. buyers desire to purchase more than is produced. c. sellers desire to produce and sell more than buyers wish to purchase. d. quantity demanded exceeds quantity supplied.