If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right, the result will be a
a. decrease in the level of output.
b. decrease in the price level.
c. higher price level.
d. higher unemployment rate.
b
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The supply curve for money ________
A) is upward sloping with respect to interest rates B) is fixed to a specified interest rate C) is fixed regardless of the interest rate D) is downward sloping with respect to interest rates E) none of the above
Relative to uniform-price policy, price discrimination across segmented markets (sometimes called third-degree price discrimination):
a. always reduces welfare. b. always increases welfare. c. may increase welfare if total output falls. d. may increase welfare if total output rises.
The distinction between efficiency and equality can be described as follows:
a. Efficiency refers to maximizing the number of trades among buyers and sellers; equality refers to maximizing the gains from trade among buyers and sellers. b. Efficiency refers to minimizing the price paid by buyers; equality refers to maximizing the gains from trade among buyers and sellers. c. Efficiency refers to maximizing the size of the pie; equality refers to producing a pie of a given size at the least possible cost. d. Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.
The supply curve in the graph above is
A. perfectly elastic.
B. relatively elastic.
C. perfectly inelastic.
D. relatively inelastic.