Figure 4.3 illustrates the demand for tacos. If people expect the price of tacos to decrease in the near future, this would most likely bring about a movement from:
A. point a to point b.
B. point c to point a.
C. D2 to D0.
D. D0 to D1.
Answer: C
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Money's medium of exchange function helps to compute the real value of labor
Indicate whether the statement is true or false
Since 1900, real GDP per capita in the United States has ________ in the short run and has ________ in the long run
A) fluctuated; displayed a strong upward trend B) remained fairly stagnant; grown considerably C) decreased more often than it has increased; increased more often than it has decreased D) grown at a stable and consistent rate; wildly fluctuated
Which of the following most accurately states the economic significance of exchange?
a. Physical goods have value because they exist; exchange can neither increase nor decrease their value. b. Exchange creates value by permitting trading partners to expand total output as the result of specialization in areas where they have a comparative advantage. c. Exchange creates value by moving goods from people who value the goods less to people who value the goods more. d. Both b and c are true.
If aggregate demand shifts from AD4 to AD5,
A. output will rise and the price level will fall.
B. output will fall and the price level will rise.
C. neither output nor the price level will change.
D. the price level will rise and output will remain unchanged.