A sudden lack of goods:
a. supply shock
b. shortage
c. excess supply
d. disequilibrium
e. search costs
Ans: a. supply shock
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The shape of the aggregate demand curve does not tell us anything about how the total dollar value of spending will ultimately be divided between output and prices. For this we need
A) information about the standard of living in the country. B) information that only the Consumers' Price Index can provide. C) an aggregate supply curve. D) to know how far from the origin the aggregate demand curve is.
If the price of x falls, the budget constraint:
a. shifts outward in a parallel fashion. b. shifts inward in a parallel fashion. c. rotates outward about the x-intercept. d. rotates outward about the y-intercept.
When countries specialize, total world output increases, and, therefore, the potential for greater total world consumption also increases
a. True b. False Indicate whether the statement is true or false
Money's basic advantage as compared to barter is that
A) everybody has money but not everyone has the opportunity to barter. B) a money system relies on a double coincidence of wants. C) money reduces transaction costs. D) money is the only medium you can use to store your wealth.