The slope of the budget line is determined only by the prices of the commodities purchased
a. True
b. False
Indicate whether the statement is true or false
True
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In Figure 4-18, there would be a shortage of T-shirts if the price were
A. $10 and the market price will rise. B. $8 and the market will tend toward equilibrium. C. below $8 and the shortage persists. D. between $8 and $6 and the shortage will get larger.
Figure 5-3
Suppose that the market price rises from $3 to $5. What is the change in market demand?
A. 80 B. 30 C. 50 D. 110
On the short-run Phillips curve, the expectations of inflation:
A. remain constant. B. are rising or falling depending on how the economy is performing. C. are falling. D. are rising.
A recessionary gap exists when the equilibrium level of GDP
A. falls short of potential GDP. B. equals potential GDP. C. exceeds potential GDP. D. causes inventory levels to fall.