Explain the difference between a change in the quantity demanded and a shift in the demand curve
What will be an ideal response?
A shift in the demand curve means that at every price, consumers buy a different quantity than before. This shift of the entire curve is what economists refer to as a change in demand.
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The basic Keynesian argument for discretionary monetary policy is that
A) monetary policy is the principal cause of business cycles. B) monetary policy is much more effective than fiscal policy. C) aggregate demand is unstable and monetary policy can help to stabilize it. D) reducing unemployment is much more important than reducing inflation.
Menu costs are an important source of price stickiness because ________
A) printing menus is costly B) putting items "on sale" reduces firms' revenue C) frequent price changes may lead to losing customers D) all of the above E) none of the above
The Sunshine Corporation finds its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.OutputTVC1$302503654855110Refer to the above information. The total cost of producing 3 units of output is:
A. $185. B. $105. C. $65. D. $145.
Given a required reserve ratio of 10 percent for all banks, total bank reserves of $400 billion could support maximum deposits of:
A. $400 billion. B. $4,000 billion. C. $40 billion. D. $1,600 billion.