Refer to Figure 4-4. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?
A. a decrease in the price of tennis racquets
B. an expectation by buyers that their incomes will increase in the very near future
C. an increase in the price of tennis balls
D. a decrease in the number of people in the United States under age 70
Answer: D. a decrease in the number of people in the United States under age 70
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Which of the following statements is TRUE?
A) Real GDP fluctuates around potential GDP. B) Potential GDP fluctuates around real GDP. C) Potential GDP is the same as real GDP. D) When all of the economy's resources are fully employed, the value of production is called real GDP.
If Good Tissue sells its toilet paper only in packages of six rolls, this is an example of ________.
A) two-part pricing B) commodity bundling C) an all-or-nothing offer D) linear pricing
Policies to deregulate the labor market in Britain are examples of ________ policy.
A. environmental B. anti-trust C. monetary D. structural
Assuming a reserve requirement of 10 percent, if the Fed sells $20 billion in bonds to the public, the lending capacity of the system will eventually
A. Decrease by $20 billion. B. Increase by $200 billion. C. Decrease by $200 billion. D. Increase by $20 billion.