If the aggregate demand curve shifts rightward, then _____
a. the price level increases and output decreases
b. the resulting increase in the price level is usually called cost-push inflation
c. the resulting increase in the price level is usually called demand-pull inflation
d. the price level increases as long as the aggregate supply curve shifts leftward
e. the price level decreases and output decreases
c
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An increase in the price level, other things equal, will shift the ________.
A. consumption and net exports schedules of the aggregate expenditures model upward, but the investment schedule downward B. consumption, investment, and net exports schedules of the aggregate expenditures model upward C. consumption, investment, and net exports schedules of the aggregate expenditures model downward D. consumption and investment schedules of the aggregate expenditures model upward, but the net exports schedule downward
The average revenue curve can also be described as the demand curve.
Answer the following statement true (T) or false (F)
Describe the operation of the Medicare program. Discuss who is covered under the program, how it is financed and the distinction between Part A and Part B of the program
What will be an ideal response?
Dorothy lives in a city with high air pollution. Pollution is a bad, but she is able to avoid air pollution by wearing a face mask. Her preferences are given by
U(q1,q2 ) = (q1 - P)2q22 where q1 is the amount of time she spends wearing a mask, P is the amount of pollution and q2 is a composite of other goods (p2 = 1 ). Dorothy must decide how much to wear a mask and how much q2 to purchase. The price of masks is pM. Assume q1* > P when answering this question. a. Derive Dorothy's demand for masks, q1*(p1,Y, P) b. How does the quantity of pollution affect the demand for masks? That is, find q1*/P. c. How does her income influence the quantity of masks she purchases? That is, find q1*/Y. d. What condition must hold for the assumption q1* > P to hold?