If food is measured on the horizontal axis of a budget line diagram, and clothing is measured on the vertical axis, an increase in
a. the price of food will decrease the slope (e.g., -9 instead of -6) of the budget line
b. the price of food will increase the slope of the budget line
c. income will decrease the slope of the budget line
d. income will increase the slope of the budget line
e. the price of clothing will decrease the slope of the budget line
A
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If the horizontal axis measures the quantity of bank reserves and the vertical axis measures the interest rate, the demand curve for bank reserves ________
A) slopes up B) is perfectly elastic C) slopes down D) is perfectly inelastic
Social Security payments:
A. now hold their value over time. B. are adjusted for inflation using the CPI. C. undergo cost-of-living adjustments. D. All of these statements are true.
Which of the following demonstrates the law of supply?
a. When leather became more expensive, belt producers decreased their supply of belts. b. When car production technology improved, car producers increased their supply of cars. c. When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. d. When ketchup prices rose, ketchup sellers increased their quantity supplied of ketchup.
An increase in aggregate demand will tend to cause which of the following?
A. a recessionary gap B. cost-push inflation C. a deflationary gap D. none of these