A decrease in the price level in an economy will _____
a. shift the aggregate demand curve to the right
b. shift the aggregate demand curve to the left
c. increase the level of aggregate quantity demanded
d. decrease the level of aggregate quantity demanded
e. shift the aggregate expenditure line downward
c
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If the total expenditures of a typical family equaled $35,000 per year in 2010 and the exact same basket of goods and services cost $40,000 in the year 2015, the family's cost of living:
A. increased by 14 percent. B. decreased by 14 percent. C. increased by 12.5 percent. D. decreased by 12.5 percent.
Some economists warn that "prices aren't everything" in considering agricultural policy. What other issues may slow development, even if prices are "right"?
What will be an ideal response?
If the population of Country A grows at 3% a year but technology growth is zero, then the neoclassical model predicts that in the steady state
a. the capital-to-labor ratio will increase at 3% a year. b. per capita output to grow at 3% a year. c. per capital output to grow at less than 3% a year. d. the capital-to-labor ratio to decrease at 3% a year. e. a and b.
What is a seller's opportunity cost?