When the supply of a good increases and its demand decreases by the same amount:
a. Price will change in the same direction as the shift in supply
b. Price will change in the same direction as the shift in demand.
c. Quantity exchanged will change in the same direction as the shift in supply.
d. Quantity exchanged will change in the same direction as the shift in demand.
b
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If public goods can be produced more efficiently, then
A) public goods increase, and private goods may increase or decrease. B) public goods production stays the same, and private goods increase. C) public goods and private goods both increase. D) public goods production falls, and private goods production rises.
If the government enacts contractionary fiscal policy, it could:
A. reduce its spending. B. decrease personal income taxes. C. decrease corporate income taxes. D. All of these are contractionary.
The Federal Reserve tends to increase the money supply each year
a. True b. False
Explain how the CPI is constructed
What will be an ideal response?