If the demand for a commodity is perfectly elastic, a downward shift in supply will result in lower prices
Indicate whether the statement is true or false
F
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An increase in spending of $25 billion increases real GDP from $600 billion to $700 billion. The marginal propensity to consume must be ____ and the multiplier is ________.
A. 0.25;4 B. 0.75;4 C. 0.80;5 D. 0.50;2
The Federal Reserve has just purchased bonds in the market, carrying out open market operations. In the short run in the Keynesian model, this would cause the foreign real interest rate to ________ and foreign output to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
A profit-seeking firm will choose the combination of inputs that:
A. maximizes profit. B. maximizes costs. C. has the lowest average variable cost. D. has the lowest average total cost.
Change in the price of a good causes the demand schedule for that good to shift
a. True b. False Indicate whether the statement is true or false