The downward-sloping aggregate demand curve is partly due to the:
A. positive relationship between the price level and government spending.
B. positive relationship between the price level and net exports.
C. negative relationship between the price level and net exports.
D. negative relationship between the price level and government spending.
Answer: C
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If inflation had long been 7% and was therefore expected to continue, then it unexpectedly increased to 4% inflation: a. the real interest rate on loans issued just before the change occurred would decrease by three percentage points. b. the real interest rate on loans issued just before the change occurred would increase by three percentage points. c. the real interest rate on loans issued
just before the change occurred would not change. d. none of the above.
If farm price supports gave farmers 80 percent parity in 1950 and 60 percent parity in 1975, then we know that
a. the ratio of farm income to nonfarm income was higher in 1975 than in 1950 b. the ratio of farm income to nonfarm income was higher in 1950 than in 1975 c. the ratio of farm prices to nonfarm prices was higher in 1975 than in 1950 d. the ratio of farm prices to nonfarm prices was higher in 1950 than in 1975 e. farmers were better off in 1975 than in 1950
Which of the following statements about a political campaign is false?
A) Candidates often label their opponents as either "too far right" or "too far left." B) Candidates often call themselves "middle-of-the-roaders" rather than "right-wingers" or "left-wingers." C) Candidates often tend to talk about ends rather than means. D) Candidates often tend to talk in specific terms rather than general terms about what needs to be done.
Answer the following statements true (T) or false (F)
1. In the market for sushi, an increase in supply and a greater decrease in demand will cause both the equilibrium price and quantity to decrease. 2. In the market for sushi, an increase in the price of fish along with an increase in the popularity of sushi among consumers will cause the equilibrium quantity to increase, but the effect on the equilibrium price is indeterminate. 3. In the market for gasoline, if the change in demand due to the start of the summer driving season is greater than the change in supply due to disruptions in the refinery operations in the Gulf, then the equilibrium quantity will increase. 4. In the market for crude oil, if the change in demand due to falling price of natural gas (a substitute for oil) is greater than the change in supply due to disruptions in oil-well operations in the Middle East, then the equilibrium price of oil will decrease. 5. In the foreign exchange market, if Canadian companies import more products from the U.S., then the demand for Canadian dollars will increase.