Which of the following shifts aggregate demand to the right?
a. Congress reduces purchases of new weapons systems.
b. The Fed buys bonds in the open market.
c. The price level falls.
d. Net exports fall.
b
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Assume that Figure 4-16 shows the supply of steak. An increase in the price of pork will change the supply from
a. S1to S2. b. S2to S1. c. S2to S3. d. S1to S3.
When demand is elastic, marginal revenue is
A) positive. B) negative. C) zero. D) increasing as output increases. E) undefined.
Macroeconomists are concerned with each of the following issues EXCEPT:
A. Why do the prices of computers increase more slowly than the price of gasoline? B. What are the costs of inflation? C. Why does inflation vary over time? D. Why does inflation vary across countries?
Consider the following information for a family. The income for the family is $58,000; if the MPC is 0.6, and income increases by $13,000, then the increase in savings for the family is:
a. $5,400. b. $5,200. c. $420. d. $7,800.