For levels of disposable income to the left of the point where consumption intersects the 45-degree line
A. Saving is negative.
B. Disposable income exceeds consumption.
C. Saving equals disposable income.
D. Consumption equals disposable income.
A. Saving is negative.
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Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the
A) price will rise. B) quantity supplied will decrease. C) supply curve will shift leftward. D) supply curve will shift rightward.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Figure 10-1
If the price level in Figure 10-1 were 120,
a.
there would be excess goods on the market.
b.
firms would have to raise their prices.
c.
inventories would be disappearing.
d.
aggregate quantity demanded would exceed aggregate quantity supplied.
"Net transfers of private money" most often represent
A. purchases by foreigners of U.S. export goods. B. money sent home by foreign workers in the U.S. C. purchases by foreigners of physical capital in the U.S. D. purchases of foreign-produced goods and services by U.S. citizens.