The price of imported oil decreased in 2001. How did this affect the aggregate supply curve?
A. The aggregate supply curve became steeper.
B. The aggregate supply curve became flatter.
C. The aggregate supply curve shifted inward.
D. The aggregate supply curve shifted outward.
Answer: D
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As Judy moves down along her budget line, ________
A) the opportunity cost of the good measured along the x-axis increases B) the opportunity cost of the good measured along the y-axis increases C) her income decreases D) her income does not change and neither does the relative price of the goods
Refer to Figure 13-3. Suppose the economy is at point C. If government spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
In the United States, (gross) investment has fluctuated between ________ of GNP in recent years
A) 2 and 12 percent B) 11 and 22 percent C) 22 and 32 percent D) 32 and 42 percent E) 42 and 52 percent
When uncertainty over the timing of death is added to the LCH, this ________ the planning horizon and ________ the MPC for transitory income
A) shortens, raises B) shortens, lowers C) lengthens, raises D) lengthens, lowers