An increase in the price of good X will have what effect on the budget line on a normal X-Y graph?
A. An increase in the vertical intercept
B. A parallel inward shift of the line
C. A decrease in the horizontal intercept
D. A parallel outward shift of the line
Answer: C
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Social savings is
A. just another way of defining security. B. the sum of government and private savings. C. government savings only. D. defined by higher rates of interest for the government.
According to Keynes, a pessimistic outlook causes consumers and businesspersons to ____, and a recession could occur.
A. increase planned investment B. decrease planned spending C. increase exports D. decrease imports E. decrease saving
Give an example of a firm that decides to shut down because it cannot cover variable costs. Use hypothetical numbers and avoid using any examples provided in the text.
What will be an ideal response?
In the figure above, the economy is at point A when the price level falls to 100. Money wage rates and all other resource prices remain constant. Firms are willing to supply output equal to
A) $15.5 trillion. B) $16.0 trillion. C) $16.5 trillion. D) None of the above answers is correct.