If investment decreases by $20 billion and the economy's MPC is .5, the aggregate demand curve will shift:
A. leftward by $40 billion at each price level.
B. rightward by $20 billion at each price level.
C. rightward by $40 billion at each price level.
D. leftward by $20 billion at each price level.
A. leftward by $40 billion at each price level.
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If a commodity is inexpensive and its total utility is great,
A. it is an inferior good. B. it is plentiful. C. its marginal utility is high. D. the ratio of price to marginal utility is very high.
What is significant about a point on a graph at which an indifference curve is tangent to a budget constraint?
Senator Franklin told Senator Jefferson he would support her new bridge project if she would support his retirement funding bill. This is an example of ______.
a. rent seeking b. vertical equity c. logrolling d. gerrymandering
In the upward-sloping segment of the aggregate supply curve,
A. increases in output are linked to decreases in the price level. B. firms are willing to pay higher wages to get more labor. C. producers can hire more workers without having to raise the wage rate. D. the economy can increase aggregate supply without prices going up.