When economists say the quantity demanded of a product has increased, they mean the:
A. demand curve has shifted to the left.
B. demand curve has shifted to the right.
C. price of the product has fallen, and consequently, consumers are buying more of it.
D. price of the product has risen, and consequently, consumers are buying less of it.
Answer: C
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According to ________, the economy is normally at potential GDP
A) real business cycle models B) the adaptive expectations theory C) the short-run Phillips curve D) new Keynesian economists
Which of the following correctly describes the federal budget?
a. The federal budget is a plan that describes Fed's monetary policy for the current financial year. b. The federal budget is an aggregate profit and loss statement for all of the nation's business firms. c. The federal budget is the sum of the spending plans of the 50 states. d. The federal budget is a plan for federal government outlays and revenues for a specified period, usually a year.
As the MPC gets close to 1, the value of the multiplier approaches
a. 0. b. 1. c. infinity. d. None of the above is correct.
In a market system, the costs associated with exchanging goods are known as
A) voluntary costs. B) signaling costs. C) implicit costs. D) transaction costs.