In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________, everything else held constant
A) up; rise
B) up; fall
C) down; rise
D) down; fall
D
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Which of the following statements is correct about the demand curve of the perfectly competitive industry?
A) The demand curve of the perfectly competitive industry is horizontal as are the demand curves facing the individual firms. B) The market demand curve of perfect competition is vertical because the individual consumers are buying a homogeneous product. C) The market demand curve of the perfectly competitive industry is downward sloping while the demand curve facing an individual firm is horizontal. D) The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.
If US consumers want to buy Chinese goods, they will
a. buy Yuans to sell US Dollars b. Sell Yuans to buy US Dollars c. Demand Yuan d. Both a and c
Suppose Niampora, an island country, is the largest exporter of cotton in its region. A recent flood affected a large part of the country. Which of the following will be an impact of the flood on the supply curve of cotton?
a. The supply curve of cotton will shift rightward. b. The supply curve of cotton will shift leftward. c. The supply curve of cotton will become steeper. d. The supply curve of cotton will become flatter.
Which of the following is the clearest evidence of employment discrimination against minority employees?
a. The average wages of minority workers are lower than the average wages of whites. b. The average wages of minority employees are lower than the average wages of whites with similar productivity characteristics. c. The mean number of years of schooling of minority workers is lower than that of whites. d. The average hours worked by minority employees exceeds the hours worked by whites.