In the traditional Keynesian model, if the government increases government spending,
A) the C + I + G + X line will shift up but the aggregate demand curve will not shift.
B) the C + I + G + X line will shift down but the aggregate demand curve will not shift.
C) the C + I + G + X line will shift up and the aggregate demand curve will shift to the right.
D) the C + I + G + X line will shift down and the aggregate demand curve will shift to the left.
C
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The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. What is the marginal utility per dollar from magazines when the sixth magazine is purchased?
A) 36 units B) 15 units C) 9 units D) 5 units
Last year, Alice bought 40 CDs when her income was $20,000 . This year, her income increased to $25,000 . and she purchased 48 CDs. We can conclude that:
a. Alice's price elasticity of demand for CDs is equal to 1. b. Alice's demand for CDs is price-inelastic. c. Alice's demand for CDs is price-elastic. d. the income elasticity of demand for CDs is negative. e. CDs are a normal good.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, domestic prices would:
A. remain $14 for domestically produced goods, and be $10 for those units imported. B. drop to $10 for all units. C. increase to $17 for all units sold. D. remain $14, with more units sold overall.
Inflation is a rise in:
A. The general level of prices over time B. The standard of living over time C. Unemployment over time D. Real GDP over time