The "other things equal" assumption is employed when:
A. The graph of a given relationship is shifting up or down
B. Economists draw a two-dimensional (or two-axes) graph
C. The relationship in direct, but not when it is inverse
D. The relationship in inverse, but not when it is direct
Answer: B
You might also like to view...
The aggregate supply curve will shift to the right when the:
a. amount of labor in the society decreases. b. capital stock of the society shrinks. c. amount of natural resources in the society gets smaller. d. amount of labor in the society increases. e. price level in the economy rises.
If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index falls, and real GDP falls. b. Price index falls and the change in real GDP is uncertain. c. Price index is uncertain, and real GDP rises. d. Price index is uncertain, and real GDP falls. e. Neither the price index nor real GDP changes.
Which of the following is a possible result of price confusion?
A. People are less able to take actions that mitigate the impact of monetary policy. B. Sellers will face pressure to provide more accurate pricing information. C. The price system becomes a less effective way to coordinate economic action. D. The signals that prices send become clearer and more necessary.
Which of the following forms of money will earn at least some interest income?
What will be an ideal response?