Refer to the above graph. The shift of the budget line from AB to CD is consistent with:
A. decreases in the prices of Good 1 and Good 2 in equal proportion.
B. an increase in the price of Good 1 and no change in the price of Good 2.
C. a decrease in the price of Good 2 and no change in the price of Good 1.
D. a decrease in money income.
Answer: A
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Refer to Figure 15-10. The deadweight loss due to a monopoly is represented by the area
A) GEH. B) FGE. C) FQ1Q2E. D) FHE.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
The right rate of inflation for the economy-the rate at which no one really pays attention to it-is a rate between:
A. ?5 and zero percent. B. 2 and 5 percent. C. zero and 2 percent. D. ?2 and 2 percent.
Which of the following countries had an economic growth rate equal to zero between 1960 and 2004?
A) South Africa B) Philippines C) South Korea D) Kenya