If the investment demand curve is vertical, a decrease in the interest rate will __________ investment, and therefore aggregate demand will __________
A) increase; increase
B) decrease; increase
C) decrease; decrease
D) decrease; remain unchanged
E) not affect; remain unchanged
E
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Based on the figure above, which of the following factors could lead the demand curve to shift leftward from D0 to D2?
A) a rise in expected future U.S. exchange rate B) a fall in the U.S. exchange rate C) a rise in the U.S. interest rate D) a rise in the U.S. exchange rate E) a fall in foreign interest rates
A firm's minimum efficient scale is the largest quantity of output at which long-run average cost reaches its highest level
Indicate whether the statement is true or false
Changes in aggregate demand
A) could be caused by changes in the spending decisions of the households, businesses, the government, and foreigners. B) are very uncommon. C) are unlikely to change quickly in response to economic events. D) are primarily based on changes in firms' abilities to produce products. E) are not affected by changes in government policies.
When price was 10, quantity demanded was 50. When price increased to 12, quantity demanded decreased to 40. Therefore, when price increased, total revenue
A. decreased from 500 to 480, indicating that demand is inelastic. B. decreased from 500 to 480, indicating that demand is elastic. C. increased from 480 to 500, indicating that demand is inelastic. D. increased from 480 to 500, indicating that demand is elastic.