According to Baumol and Blinder, from the demand side a decrease in the price level causes aggregate expenditures to
a. fall, resulting in a lower level of equilibrium income.
b. fall, resulting in a higher level of equilibrium income.
c. rise, resulting in a higher level of equilibrium income.
d. rise, resulting in a lower level of equilibrium income.
c
You might also like to view...
Refer to the table below. To increase output from 33 to 66 units requires ________ extra employee-hour(s); to increase output from 66 to 99 units requires ________ extra employee-hour(s).OutputPer DayNumber ofEmployeeHours Per Day00331662994132716511
A. 2; 4 B. 1; 1 C. 2; 1 D. 1; 2
Major macroeconomic questions include all of the following EXCEPT:
A. Can inflation be reduced without generating additional unemployment? B. Are free trade agreements beneficial? C. How do monopoly firms set prices and determine quantities to produce? D. What causes slowdowns in productivity growth?
Which of the following is true if the total cost curve is rising?
a. Total fixed cost is decreasing. b. Total fixed cost is increasing. c. Marginal cost is decreasing. d. Marginal cost is increasing.
The profit a publisher makes on the sale of a used college textbook is
A. zero. B. half of the amount they made when it sold for the first time. C. the same as when they sell it new. D. $2 per book.