An increase in the price level will
A) shift the aggregate demand curve to the left.
B) shift the aggregate demand curve to the right.
C) move the economy up along a stationary aggregate demand curve.
D) move the economy down along a stationary aggregate demand curve.
Answer: C
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Money is scarce, but resources are not.
Answer the following statement true (T) or false (F)
Marginal propensity to consume
A) is the amount of consumption that is independent of the level of disposable income. B) is the same as the break-even point. C) is the proportion of total disposable income that is consumed. D) gives the amount a person changes planned consumption for a change in real disposable income.
If preferences are one-dimensional and preferences are single peaked, majority rule will result in selection of the project most favored by a. no one
b. the median voter. c. the average voter. d. everyone.
A utility-maximizing consumer is currently spending all of his/her income on two products, A and B. The MU of the last unit of A consumed is 50, the price of A is $25, and the price of B is $10 . The MU of the last unit of B consumed is
a. 50 b. 5 c. 2 d. 20 e. 100