One would speak of a movement along a supply curve for a good, rather than a change in supply, if
A) prices of substitutes in production change.
B) supplier expectations about future prices change.
C) the price of the good changes.
D) the cost of producing the good changes.
C
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Lizzie's budget line is shown in the figure above. If Lizzie's income is $20, which of the following formulas represents her budget equation?
A) QC = 20 + QM B) QC = 20 - QM C) QC = -20 + 2 QM D) QC = 20 - 2QM
The crowding-out effect implies that restrictive fiscal policy will
a. increase aggregate demand and employment. b. lead to a significant increase in the natural rate of unemployment. c. be highly effective against inflation. d. reduce real interest rates.
Assume the nominal dollar-per-euro ($/€) exchange rate appreciates by 2%, U.S. prices rise by 5% and Euro-Area prices rise by 3%. By approximately how much does the real exchange rate change?
a. There is no change. b. 1% c. 2% d. 3% e. 4%
Suppose that the wage for teachers decreases relative to other occupations. We know that ________ people will work as teachers, and the total number of hours worked will ________.
A. more; increase B. more; decrease C. fewer; increase D. fewer; decrease