Figure 5-13
According to Figure 5-13, if the price of good X falls, a consumer making her optimal decision will move from a point on
a.
U1 to a point on U3.
b.
U2 to a point on U3.
c.
U1 to a point on U3.
d.
U2 to a point on U1.
b
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The law of demand implies that if nothing else changes, there is
A) a positive relationship between the price of a good and the quantity demanded. B) a negative relationship between the price of a good and the quantity demanded. C) a linear relationship between price of a good and the quantity demanded. D) an exponential relationship between price of a good and the quantity demanded.
An asset's fundamental value equals
A) its face value. B) its maturity value. C) the market's best guess of the present value of the asset's expected future returns. D) the weighted sum of its market price over the recent past.
Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP
a. True b. False Indicate whether the statement is true or false
Identify how ideas from monetarism and rational expectations have been incorporated into mainstream thinking about macroeconomics.
What will be an ideal response?