Using Figure 8.1, a decrease in the quantity of aggregate demand resulting from the interest rate effect would be depicted as a movement from point
A. A to point C.
B. B to point C.
C. C to point A.
D. B to point A.
Answer: C
You might also like to view...
In markets-oriented systems, handling of the manager-stockholder conflict in large firms is through
A) rating agencies. B) the potential for takeovers. C) management ownership of the firm. D) bank ownership of the firm.
Employing the New Keynesian concepts of "macroeconomic externality" and "coordination failure":
if nominal aggregate demand and marginal cost fall by the same proportion, society ________ afford to compensate firms for the profit they lose when they ________. A) can, bear the menu costs of changing prices B) can, hold prices constant C) cannot, bear the menu costs of changing prices D) cannot, hold prices constant
Assume the market is in equilibrium in the graph shown at demand D and supply S1. If the supply curve shifts to S2, and a new equilibrium is reached, equilibrium quantity will increase from 4 to 4.5 units. Which of the following is true?
A. Producer surplus increases by $3.00.
B. Producer surplus decreases by $8.50.
C. Producer surplus increases by $7.50.
D. Producer surplus decreases by $16.
Price controls
A. are government-mandated minimum or maximum prices that may be charged for goods. B. exist when firms decide that they want to charge a higher price for their product. C. exist when consumers boycott a product. D. are the benefit of discount stores like Sam's Club.