Wealth and substitution effects explain why the aggregate demand curve has a positive slope
Indicate whether the statement is true or false
FALSE
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Refer to Figure 3-1. A decrease in taste or preference would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Looking ahead to how the shopkeeper is more likely to respond what price should the customer more likely to quote?
a. High price b. Low price c. Let the shopkeeper quote the price d. A compromised price between the high and the low
One likely reason that the country of Appleland is poor is that it
a. does not produce many goods and services b. has highly educated and productive female workers c. has a low birth rate d. enjoys a low infant mortality rate e. has a high literacy rate
Which of the following would both make the interest rate on a bond higher than otherwise?
a. the interest it pays is taxed and it is long term b. the interest it pays is taxed and it is short term c. the interest it pays is tax exempt and it is long term d. the interest it pays is tax exempt and it is short term