Which of the following affected aggregate demand during the recession of 2008-2009?
a. a decline in residential construction and a decrease in lending
b. a decline in residential construction but not a decrease in lending
c. a decrease in lending but not a decline in residential construction
d. neither a decrease in residential construction nor a decrease in lending
a
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If the demand for softballs increases, one could expect the demand for leather to increase. This is due to the a. principle of diminishing marginal product
b. change in the opportunity cost of producing a softball. c. reduction in the cost of producing softballs. d. demand for an input being a derived demand.
If Y = $500 billion, autonomous consumption = $400 billion, and the marginal propensity to save = 0.20, then saving will equal
a. –$300 billion b. $300 billion c. $0 d. $80 billion e. –$80 billion
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. Suppose that income for next year is forecasted to be $9,000 instead. What is the revised price forecast for next year?
A. $ 5 B. $15 C. $ 3 D. $18 E. none of the above
The expansion path
A. is the collection of all input combinations at which the marginal rate of technical substitution equals the input price ratio. B. shows how the cost-minimizing input choices change as the firm's output level changes. C. shifts if the input price ratio changes. D. both a and c E. all of the above