Related to the Economics in Practice on p. 478: According to the "paradox of thrift," increased efforts to save will cause a(n)
A. decrease in income but an increase in saving.
B. increase in income and an increase in overall saving.
C. increase in income but no overall change in saving.
D. decrease in income and an overall decrease in saving.
Answer: D
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Socialism seeks to abolish the market-price system. In the economic way of thinking, socialism would therefore
A) generate tremendous economic growth. B) overcome scarcity. C) lead to a greater coordination among peoples' production and consumption plans. D) allow everybody the opportunity to seek their comparative advantage. E) accomplish none of the above.
Over time in a growing economy, the long-run aggregate supply curve will
A) become horizontal at the long-run potential price level. B) shift rightward. C) shift leftward. D) become increasingly steep.
Which of the following is a component of aggregate demand?
A. Consumption B. Investment C. Net exports D. All of these are components of aggregate demand.
A decrease in the price level will: a. increase the quantity of RGDP supplied, but not increase short-run aggregate supply. b. decrease the quantity of RGDP supplied, but not decrease short-run aggregate supply. c. increase short-run aggregate supply
d. decrease short-run aggregate supply.