Refer to the information provided in Figure 27.1 below to answer the question(s) that follow.
Figure 27.1Refer to Figure 27.1. An aggregate demand shift from AD2 to AD1 can be caused by
A. a decrease in taxes.
B. a decrease in money supply.
C. a decrease in the price level.
D. an increase in the price level.
Answer: A
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Acme Computer Co sells computers to retail stores for $400 . If Acme requires the retailers to charge customers $500 for the computers, then it is engaging in
a. resale price maintenance. b. predatory pricing. c. tying. d. monopolistic competition.
From 2001 to 2005 there was a dramatic rise in the price of houses. If this rise made people feel wealthier, then it would have shifted
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from an increase in domestic savings?
What will be an ideal response?
Which is a correct statement?
A. Cyclical unemployment is also called wait unemployment because this unemployment depends on the timing of the business cycle. B. Frictional unemployment is the result of frictions between labor and management over how best to perform work. C. Structural unemployment results from changes in the structure of consumer demand or technology. D. Search unemployment is the broadest unemployment category because it covers all other types of unemployment.