The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a and trade is possible, which of the following points are possible equilibria?
A) a and b
B) a and c
C) b and d
D) c and d
D
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We can derive the market demand curve for gold earrings
A) only if the tastes of all gold earring consumers are similar. B) by adding the prices each gold earring consumer is willing to pay for each quantity. C) by adding horizontally the individual demand curves of each gold earring consumer. D) by adding vertically the quantity demanded of each gold earring consumed at each price.
Stagflation occurs when short-run aggregate supply decreases
Indicate whether the statement is true or false
A change in consumption caused by a change in disposable income is shown by:
a. a movement along the consumption function. b. a rightward shift of the consumption function. c. a change in the slope of the consumption function. d. a leftward shift of the consumption function. e. the point where the consumption function touches the 45 degree line.
In this graph, what does Y represent?
a. demand
b. output
c. spending
d. consumption