Figure 33-6
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If the economy in 34-6 (b) is experiencing an inflationary gap (point g), the economy’s self-correcting process will move unemployment to ____ and inflation to ____.
A. 4 percent; 6 percent
B. 5.5 percent; 5 percent
C. 5.5 percent; 7 percent
D. 5.5 percent; 2 percent
Answer: C
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Which of the following would be expected to shift the consumption function up?
A) decreases in wealth B) increases in the nation's population C) expectations of harder times ahead D) changes in real disposable income
Two products that serve similar purposes for a consumer would be referred to as
a. substitutes. b. complements. c. inferior goods. d. unrelated goods.
At the equilibrium price, the quantity of the good that buyers are willing and able to buy
a. is greater than the quantity that sellers are willing and able to sell. b. exactly equals the quantity that sellers are willing and able to sell. c. is less than the quantity that sellers are willing and able to sell. d. Either a) or c) could be correct.
The marginal utility per dollar you are spending on iTunes music downloads is less than the marginal utility per dollar you are spending on Red Bull. According to the rule of equal marginal utility per dollar? spent, what can you do to increase your total utility from consumption of music downloads and Red? Bull?