Using the standard 45-degree line diagram, how does an increase in investment spending effect the expenditure schedule?
a. It shifts the expenditure schedule downward.
b. It shifts the expenditure schedule upward.
c. It increases the slope of the expenditure schedule.
d. It decreases the slope of the expenditure schedule.
b
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Refer to Figure 17-1. If Dale can sell her doilies at $2 each, what is the marginal product of the 5th worker?
A) $28 B) 28 doilies C) $56 D) 14 doilies
Under long-run perfect competition, which of the following are the same (equal) at all levels of output?
a. Price and marginal cost. b. Price and marginal revenue. c. Marginal cost and marginal revenue. d. All of these.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.
An increase in quantity demanded caused no change in the equilibrium price. Thus, demand must be
A. elastic. B. perfectly elastic. C. inelastic. D. perfectly inelastic.