State how each of the following affect the aggregate demand curve
a. The price level increases.
b. Consumers expect higher inflation in the future.
c. The exchange rate rises.
d. Foreign income decreases.
a. There is a movement upward along the aggregate demand curve. The aggregate demand curve does not shift.
b. The aggregate demand curve shifts rightward.
c. The aggregate demand curve shifts leftward.
d. The aggregate demand curve shifts leftward.
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What is the effect on the price and quantity of wooden desks of a rise in the price of wood?
A) The equilibrium quantity of wooden desks increases and the equilibrium price falls. B) The equilibrium quantity of wooden desks increases and the equilibrium price rises. C) The equilibrium quantity of wooden desks decreases and the equilibrium price falls. D) The equilibrium quantity of wooden desks decreases and the equilibrium price rises.
In the country levying the tariff, the tariff will
A) increase both consumer and producer surplus. B) decrease both the consumer and producer surplus. C) decrease consumer surplus and increase producer surplus. D) increase consumer surplus and decrease producer surplus. E) decrease consumer surplus but leave producers surplus unchanged.
Refer to Scenario 9.5 below to answer the question(s) that follow. SCENARIO 9.5: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 percent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $3 on average per meal. Refer to Scenario 9.5. The restaurant's weekly economic profit is
A. zero. B. positive. C. negative. D. break-even.
As nations become richer they tend to pollute:
A. Less, and offer better protection for sensitive ecosystems B. Less, but offer worse protection for sensitive ecosystems C. More, and offer worse protection for sensitive ecosystems D. More, but offer better protection for sensitive ecosystems