In 2014, the price of peanuts was rising, which led peanut butter sellers to expect the price of peanut butter would rise in the future
Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) an increase in demand for peanut butter; an increase; an increase
B) an increase in supply of peanut butter; a decrease; an increase
C) a decrease in demand for peanut butter; a decrease; a decrease
D) a decrease in supply of peanut butter; an increase; a decrease
B
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Refer to Figure 4.7. You should definitely not ask for points if you believe that ________ of your classmates have asked for points
A) none B) less than five C) five or more D) between one and three
If Callum is consuming his utility maximizing bundle and the price of one good rises, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Callum do?
A) MU/P has increased and Callum should buy less of this good. B) MU/P has decreased and Callum should buy less of this good. C) MU/P has increased and Callum should buy more of this good. D) MU/P has decreased and Callum should buy more of this good.
How did Keynes propose to solve the problem of high unemployment?
A) Increase the growth rate of the money supply. B) Allow wages to decline, so that firms will want to hire more workers. C) Put on wage and price controls, so wages won't rise and firms won't have to lay people off to cut costs. D) Have the government increase its demand for goods and services.
Make use of the quantity equation to answer the following problem. If the Fed increases the money supply by 4%, velocity increases by 1%, and economic growth is 3%, by how much will the price level increase?
What will be an ideal response?