A rightward shift in aggregate demand will cause an increase in the price level and no change in output if aggregate supply is
A. Downward-sloping to the right.
B. Horizontal.
C. Upward-sloping to the right.
D. Vertical.
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Refer to Figure 10-6. Which diagram demonstrates a decrease in total utility following an increase in the price of candy?
A) the movement from e to d in Panel A B) the movement from g to f in Panel B C) the movement from k to h in Panel C D) none of the above
Which of the following is an example of behavior that is not rational?
A) buying stocks after stock prices have declined B) buying stocks after stock prices have risen C) a significantly higher enrollment in 401K plans if people are automatically enrolled rather than having the option of signing up on their own D) enrollment in 401K plans during a bear market
If a nation wants to get the most out of its resources, each productive assignment should be carried out by those persons who
A) least enjoy performing the productive activity. B) can complete the productive activity most rapidly. C) have a comparative advantage in the productive activity. D) have the highest opportunity cost.