Refer to Figure 10.8. Other things equal, an increase in expected inflation would best be represented by
A) a movement from point A to point C.
B) a movement from point A to point D.
C) a shift from LM1 to LM2.
D) a shift from LM2 to LM1.
C
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Why did railroads come under government regulation?
(a) Disgruntled shippers and travelers raised an outcry about the routes of railroads. (b) Some people effectively argued that railroads were charging "unfair" rates. (c) The railroad industry was too competitive, thus driving rates below those necessary to ensure normal profits for railroad companies. (d) All of the above are correct.
Which of the following is an example of price discrimination?
a. An online bookstore charges more for overnight shipping than standard shipping when customers buy books from it. b. Airline tickets are more expensive for first-class seats than for coach. c. Hotel rates for AAA members are lower than for nonmembers. d. All of the above are correct.
_____ are changes in fiscal policy that stimulate aggregate demand when the economy goes into recession without policymakers having to take any deliberate action
Fill in the blank(s) with correct word
As wage rates rise to extremely high levels,
A. the income effect becomes stronger than the substitution effect. B. the substitution effect becomes stronger than the income effect. C. both the income effect and substitution effect become stronger. D. both the income effect and substitution effect become weaker.