If the taste for a good increases, the
A. demand curve will shift to the left.
B. supply curve will shift to the left.
C. supply curve will shift to the right.
D. demand curve will shift to the right.
Answer: D
You might also like to view...
An equilibrium is an outcome in which
a. all individuals are simultaneously optimizing. b. constraints are no longer binding. c. social gain is as large as possible. d. the wants of all agents are fully satisfied.
A decrease in the dollar price of foreign currency would cause
a. the nation's imports to increase and exports to decline. b. the nation's exports to increase and imports to decline. c. both imports and exports to decline. d. both imports and exports to rise.
The reason that differences in economic growth rates are important in the long run is that
A. real GDP usually drops when adjusted for inflation. B. population naturally shrinks in most countries. C. nominal GDP typically increases faster than real GDP. D. growth compounds over time.
A problem with the use of aggregate demand management to stabilize the business cycle is that
A. fiscal policy takes a long time to have any impact on the economy. B. monetary policy isn't available to use when interest rates are already rising because of higher inflation. C. the precise amount that output will change in response to monetary or fiscal policy isn't known. D. monetary policy is difficult to use, because the decision-making process is long and complicated.