Events that shift the Ap demand schedule to the left also cause ________ the IS curve
A) movements downward along
B) movements upward along
C) parallel rightward shifts of
D) parallel leftward shifts of
D
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In the short run in the Keynesian model, a sharp increase in oil prices would leave the economy with a ________ level of output and a ________ real interest rate
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
In the case of a technology spillover, the government can encourage firms to internalize a positive externality by
a. taxing production, which would decrease supply. b. taxing production, which would increase supply. c. subsidizing production, which would decrease supply. d. subsidizing production, which would increase supply.
Monopolistic competition is characterized by which of the following attributes? (i) free entry (ii) product differentiation (iii) many sellers
a. (i) and (iii) only b. (i) and (ii) only c. (ii) and (iii) only d. (i), (ii), and (iii)
When the price of sugar was "low," consumers in the United States spent a total of $3 billion annually on its consumption. When the price doubled, consumer expenditures actually INCREASED to $4 billion annually. This indicates that:
A. sugar is a Giffen good. B. the demand for sugar is elastic. C. the demand curve for sugar is upward sloping. D. None of the statements is correct.