An upward shift of the consumption function might be caused by _____
Fill in the blank(s) with the appropriate word(s).
a decrease in the price level.
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We would expect the cross-price elasticity of demand between Pepsi and Coke to be
A. negative, indicating substitute goods. B. positive, indicating substitute goods. C. positive, indicating secondary goods. D. positive, indicating general goods.
In a perfectly competitive market,
a. one large firm controls the market and sets price, while the other smaller firms behave as price takers. b. all firms produce and sell a homogeneous product. c. the output sold by a particular firm may be quite different from the output sold by the other firms in the market. d. it's difficult for new firms to enter the market due to barriers to entry. e. the products sold by each firm are only slightly different.
A consumer has been buying 3 magazines and 1 book each month. The price of magazines then decreases, which directly causes the marginal utility per dollar spent on
A) magazines to increase, thereby inducing the consumer to purchase fewer magazines and more books. B) magazines to increase, thereby inducing the consumer to purchase more magazines and fewer books. C) books to increase, thereby inducing the consumer to purchase fewer magazines and more books. D) books to decrease, thereby inducing the consumer to purchase fewer magazines and more books.
If the expected inflation rate is unchanged, a rise in the natural rate of unemployment would
A. not shift either the short-run or long-run Phillips curves. B. shift both the short-run and long-run Phillips curves to the left. C. shift both the short-run and long-run Phillips curves to the right. D. shift the short-run Phillips curve to the left and shift the long-run Phillips curve to the right.