An increase in aggregate demand caused by any other factor than the price level in an economy will cause _____
a. the aggregate demand curve to shift rightward
b. the aggregate demand curve to shift leftward
c. an upward movement along the aggregate demand curve
d. a downward movement along the aggregate demand curve
a
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Decreases in the price level will
A) raise consumption because real wealth increases. B) lower consumption because goods and services are less affordable. C) raise consumption because goods and services are more affordable. D) lower consumption because real wealth decreases.
The marginal revenue product is the extra revenue the firm receives by selling one additional unit of output.
Answer the following statement true (T) or false (F)
Consider an economy where national income is $7,000 . autonomous consumption is $1,00 . and the MPC = 0.80 . Explain what will happen to national income in the following three cases: Case A: intended investment = $200 Case B: intended investment = $400 Case C: intended investment = $600
Marni’s country is rich in timber and has large sawmills. Carlos’s country has little land, but the government has invested heavily in education and technology. The principle of comparative advantage means that ______.
a. Marni’s country will grow faster than Carlos’s because it has more natural resources b. both countries will benefit if they each specialize production based on their resources and trade with each other c. Carlos’s country will have a higher economic growth rate than Marni’s d. these countries operate on different economic tracks and cannot be directly compared