As the price of a computer falls, overall
a. the marginal utility of computers rises
b. the total utility of computers falls
c. the total utility per dollar spent on computers falls
d. individuals would purchase fewer computers in equilibrium
e. individuals would purchase more computers in equilibrium
E
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In the aggregate demand and aggregate supply model, the point where the aggregate demand curve crosses the long run aggregate supply curve, and the expected price level equals the actual price level, is known as what?
The ______ budget constraint shows the tradeoff between present and future consumption.
a. utility-maximizing b. time-value of money c. intertemporal choice d. inflation
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
According to the income effect of labor supply, if leisure is a normal good, then an increase in the wage rate will ________ the quantity of labor ________.
A. increase; supplied B. decrease; supplied C. increase; demanded D. decrease; demanded