A decrease in consumer confidence will cause a:
A. movement downward along the aggregate demand curve.
B. shift in aggregate demand to the right.
C. shift in aggregate demand to the left.
D. movement upward along the aggregate demand curve.
C. shift in aggregate demand to the left.
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If, in response to a decrease in the price of grapes, the quantity of grapes demanded increases, economists would describe this as
A) a change in consumer income. B) an increase in quantity demanded. C) an increase in consumers' taste for grapes. D) an increase in demand.
In the Mundell-Fleming model with perfect capital mobility, the domestic interest rates are determined by
a. monetary policy. b. the IS and LM curves. c. domestic savings and investment. d. budget deficits. e. none of the above.
Settlers often received 50 acres of land for each person whose passage they paid to America. This was known as
a. a special purpose grant. b. an entailment. c. the headright system. d. planter's shares.
The reason why weaker firms accept price leadership is that they
a. maximize profit that way b. get an equal share of the market c. can collude to eventually challenge the dominant firm d. are protected from price competition e. can lower their prices to increase market share without upsetting the price leader