An increase in wealth would cause the IS curve to
A. shift up and to the right.
B. shift down and to the left.
C. remain unchanged.
D. shift up and to the right only if people face borrowing constraints.
Answer: A
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A consumer's budget constraint is
A) the limited income that a consumer has to spend on goods and services. B) the extent to which one's preferences are limited by one's income. C) the price ratio a consumer faces in the marketplace. D) the rate at which the consumer must give up one good to purchase an additional unit of the other goods in the market.
Gordon presents several modern business cycle theories. He clearly states after all have been explained that he believes the most plausible of them to be the ________ model
A) Lucas information-barrier B) Friedman fooling C) New Keynesian D) real business cycle
The imposition of a tax on a product
A) shifts the supply curve to the right. B) shifts the demand curve to the right. C) shifts both the supply and the demand curve to the right. D) shifts the supply curve to the left.
Resources are used to create goods and services
a. True b. False Indicate whether the statement is true or false