An example of a demand shifter is:
A) factor prices.
B) technology.
C) consumer preferences.
D) producer expectations.
Ans: C) consumer preferences.
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Consider the two graphs above. Suppose that the domestic currency is expected to strengthen. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
The trade-off between current consumption and the production of capital goods is also a trade-off between
A) the future cost for capital goods and future cost of consumption goods. B) having fewer needs and more wants in the future. C) satisfying the needs of the poor and the wants of the wealthy. D) current consumption and future consumption.
A decrease in the market interest rate, other things constant, will result in: a. a rightward shift of the money demand curve
b. a leftward shift of the money demand curve. c. an increase in the slope of the money demand curve. d. a movement up along the money demand curve. e. a movement down along the money demand curve.