In Figure 1.9, the slope of the line between points L and M is
A. 0.67.
B. 0.75.
C. 1.20.
D. 0.80.
Answer: C
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An increase in the interest rate will ________.
A. cause a move down along the money supply curve B. cause a move up along the money supply curve C. shift the money supply curve to the left D. shift the money supply curve to the right
The above figure shows the market for rice in Japan. S represents the domestic supply curve, and the horizontal line at P =1 represents the world supply curve. If imported rice is banned, the loss in social welfare is
A) a + b + c + d + e. B) a. C) c + e. D) i.
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Aggregate demand and aggregate supply fall. d. Neither aggregate demand nor aggregate supply change. e. None of the above.
In economics, a firm that makes a zero economic profit is said to be earning a normal profit.
Indicate whether the statement is true or false.