An expansionary fiscal policy can be illustrated by a(n):
a. Decrease in aggregate demand
b. Increase in aggregate demand
c. Change in the price level
d. Increase in aggregate supply
b. Increase in aggregate demand
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Figure 8-4
In Figure 8-4 at output level 2,
A. MR > MC. B. the slope of the total profit curve is negative. C. there are negative profits. D. marginal revenue is rising compared to output.
A decrease in supply is graphically represented as a
A) rightward shift of the supply curve. B) leftward shift of the supply curve. C) movement up and to the right on a supply curve. D) movement down and to the left on a supply curve.
In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ________ and the equilibrium price will ________
A) decrease; not change B) decrease; fall C) remain the same; either rise or fall D) remain the same; rise
Suppose that over time, consumers used discount stores at an increasing rate, the CPI would tend to be
a. accurate b. underestimated because consumers would buy goods and services at lower prices than those collected by the BLS c. underestimated because consumers would buy goods and services at higher prices than those collected by the BLS d. overestimated because consumers would buy goods and services at lower prices than those collected by the BLS e. overestimated because consumers would buy goods and services at higher prices than those collected by the BLS