Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point C to Point A, there has been
A. an increase in quantity demanded and a decrease in supply.
B. an increase in demand and an increase in supply.
C. an increase in demand and an increase in quantity supplied.
D. an increase in quantity demanded and an increase in supply.
Answer: D
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From an economists' perspective, which of the following observations is not true? a. Self-interest is purely monetary in nature
b. Self-interest can include benevolence. c. Self-interest is a good predictor of human behavior in most situations. d. Self-interest is not the same as selfishness.
The degree of international capital mobility is affected by:
a. The value of the domestic currency. b. Central bank capital controls. c. The monetary base. d. The money supply. e. The quantity of domestic currency traded per time period.
Use the following graph to answer the next question.
The perfectly competitive firm will maximize profits if it produces and sells output at
A. A. B. B. C. C. D. K.
If the aggregate supply curve is vertical, an increase in aggregate demand will
A) increase both real and nominal GDP by the full multiplier effect. B) increase real GDP but not nominal GDP. C) increase the price level but not real GDP. D) increase real GDP by less than the full multiplier effect because of rising prices.