Why do the individual demand curves for Peter and Lois have steeper downward slopes than the market demand curve?
a. The market demand curve has a larger change in quantity of coffee demanded than individual curves.
b. The market demand curve has a larger change in coffee prices than individual curves.
c. The market demand curve has a lesser change in quantity of coffee demanded than individual curves.
d. The market demand curve has a lesser change in coffee prices than individual curves.
a. The market demand curve has a larger change in quantity of coffee demanded than individual curves.
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How will an increase in lumber prices influence the home construction market?
a. The demand for newly constructed homes will increase. b. The demand for newly constructed homes will decrease. c. The supply of newly constructed homes will increase. d. The supply of newly constructed homes will decrease.
The primary criterion used to analyze the desirability of outcomes in Economics is
a. sustainability b. equity. c. predictability. d. efficiency.
According to a new Keynesian theorist, a correctly anticipated increase in aggregate demand will
A) cause the price level to increase by a greater amount in the short run than what a new classical rational expectations theorist would predict. B) cause the price level to increase by a smaller amount in the short run than what a new classical rational expectations theorist would predict. C) cause the price level to increase by the same amount in the short run that a new classical rational expectations theorist would predict. D) leave the price level unchanged in the short run, but Real GDP will increase more than what a new classical theorist would predict. E) leave the price level unchanged in the short run, but Real GDP will increase less than what a new classical theorist would predict.
The aggregate demand curve is downward sloping because an increase in the general price level will cause the demand for money, interest rates, and investment to change in which of the following ways?
A) Increase/Increase/Increase B) Increase/Increase/Decrease C) Increase/Decrease/Increase D) Decrease/Increase/Decrease E) Decrease/Decrease/Increase