A shift in the consumption function:
A. is based on the marginal propensity to consume.
B. can be caused by a change in the price level.
C. can be caused by a change in GDP.
D. cannot be caused by a change in expectations.
Answer: B
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Mark Frost grows apples in a perfectly competitive market. If we drew a line in a graph that illustrates Mark's total revenue from selling apples, it would be
A) a straight, upward-sloping line. B) a horizontal line. C) a straight, downward-sloping line. D) a curve that is negatively sloped at low levels of output and positively sloped at higher levels of output.
Suppose the exchange rate between the U.S. and Argentina is initially set at 20 pesos per dollar and increases to 25 pesos per dollar. In the U.S. economy this would be expected to
A. increase exports and decrease imports. B. increase both exports imports. C. decrease both exports imports. D. increase imports and decrease exports.
Which of the following are flows, not stocks?
a. Your wealth b. The interest that you get from that loan you made c. The value of your home d. Your income
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward