When we move up or down a given demand curve,
a. all non-price determinants of demand are assumed to be constant.
b. income and the price of the good are held constant.
c. all determinants of quantity demanded are held constant.
d. only price is held constant.
Ans: a. all non-price determinants of demand are assumed to be constant.
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When the price of a good increases, it
A. leads suppliers to place few goods on the market. B. the demand for the good shifts. C. leads consumers to want to buy more or less than before at a given price. D. a movement down along the demand curve will occur.
The price of a given basket of goods in Year 1 was $1,300. The price of the same basket of goods in Year 2 was $1,560. The consumer price index for Year 2 taking Year 1 as the base year is ________
A) 120 B) 156 C) 100 D) 101
Members of the top quintile of income earners in every country today:
A. earn disproportionately more than those in the bottom quintile. B. earn disproportionately less than those in the middle quintile. C. earn disproportionately less than they did 100 years ago. D. All of these are true.
When real interest rates in the United States rise relative to real interest rates in Japan, what is the impact on the U.S. price level? Explain your answer using AD-SRAS analysis