When the price of TVs goes up and fewer TVs are purchased, this is representative of the
A) law of demand.
B) law of supply.
C) law of market operations.
D) law of increasing costs.
Answer: A
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Suppose that we are at a point on the money demand schedule where (M/P) = 500. At a constant interest rate, the quantity of money demanded increases when real income ________ so that ________
A) rises, the money demand schedule shifts to the right B) rises, the money demand schedule shifts to the left C) rises, we move downward along the money demand schedule D) falls, the money demand schedule shifts to the left E) falls, we move upward along the money demand schedule
Consider the labor market for nurses, which initially is in equilibrium. Suppose the output price for nursing services increases. Holding all else equal, what effect will this have on the labor market for nurses?
a. The equilibrium wage will increase, and the equilibrium quantity of nurses will increase. b. The equilibrium wage will increase, and the equilibrium quantity of nurses will decrease. c. The equilibrium wage will decrease, and the equilibrium quantity of nurses will increase. d. The equilibrium wage will decrease, and the equilibrium quantity of nurses will decrease.
Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to
A. Increase and the equilibrium quantity of the other good to decrease. B. Decrease and the equilibrium quantity of the other good to decrease. C. Decrease and the equilibrium quantity of the other good to increase. D. Increase and the equilibrium quantity of the other good to increase.
John Maynard Keynes and his followers argued that the Great Depression was primarily the result of:
A. excessive government spending. B. large budget deficits. C. the perverse monetary policies of the Fed. D. insufficient aggregate spending on goods and services.