When the general price level rises
A. consumption increases as a result of the multiplier effect.
B. investment rises as a result of the real wealth effect.
C. investment rises as a result of the multiplier effect.
D. consumption falls as a result of the real wealth effect.
Answer: D
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? Newspaper recycling has been highly successful—perhaps too successful, given that many households gather and return their newspapers to recycling centers. The amount of newspapers recycled has dramatically increased, along with the number of recycling plants. Yet newspapers prefer regular newsprint over recycled newsprint, so the demand for recycled newsprint has remained essentially unchanged. The result of this for the recycled newsprint market is
A. a decrease in the supply and a higher price for recycled newsprint. B. an increase in the supply and a lower price for recycled newsprint. C. an increase in the supply and a higher price for recycled newsprint. D. a decrease in the supply and an increase in the demand for recycled newsprint.
Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry?
a. lagging economic indicators. b. leading economic indicators. c. coincident economic indicators. d. wishful thinking e. none of the above
Deregulation of the airline and trucking industry has (i) resulted in considerable entry of new firms, and (ii) has forced unions in these industries to make large concessions on wages and working conditions
a. i and ii b. i but not ii c. ii but not i d. neither i nor ii
Cartels usually succumb to divisive forces caused by
A. limited information. B. members cheating by giving secret discounts. C. entry by new rivals seeking profits. D. insufficient profits compared to independent operations.