If the price of inputs falls and the level of consumer indebtedness rises:
a. Aggregate demand and aggregate supply rise.
b. Aggregate demand falls, and aggregate supply rises.
c. Aggregate demand and aggregate supply fall.
d. Neither aggregate demand nor aggregate supply change.
e. None of the above.
.B
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If a 6 percent decrease in the price leads to a 5 percent increase in the quantity demanded, the price elasticity of demand is
A) 0.30. B) 0.60. C) 0.83. D) 1.20.
Consumers value the product-specific services for a new smartphone at $30 and the marginal cost to the retailers for providing the product-specific services is $40. If the retailers provide the product-specific services, which of the following is true?
A) The shift in the market demand will be exactly double the shift in the market supply. B) The shift in the market demand will equal the shift in the market supply. C) The shift in the market demand will exceed the shift in the market supply. D) The shift in the market supply will exceed the shift in the market demand.
The rules for respecting property rights as they relate to trade were negotiated during the Uruguay Round (1986-1994 ) and culminated in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement
Indicate whether the statement is true or false
Steve uses $300 from his paycheck to pay off his credit card balance. Based on this information:
A. Steve's saving has increased by $300. B. Steve's wealth is unchanged. C. Steve has a capital loss of $300. D. Steve's saving has decreased by $300.