An increase in the money supply will shift the aggregate demand curve to the left, resulting in a lower equilibrium price level and a lower equilibrium real GDP.
a. true
b. false
Ans: b. false
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Four roommates have moved into an apartment. However, none of them cleans the apartment thinking that the others will do it. This is an example of ________
A) the free-rider problem B) the paradox of thrift C) the paradox of plenty D) the tragedy of commons
Economists make use of assumptions, some of which are unrealistic, for the purpose of
a. teaching economics to people who have never before studied economics. b. advancing their political agendas. c. developing models when the scientific method cannot be used. d. focusing their thinking.
Suppose the own price elasticity of demand for good X is ?0.25, and the quantity of good X increases by 5 percent. What would you expect to happen to the total expenditures on good X?
A. Remain unchanged B. Decrease C. Increase D. Neither increase, decrease nor remain unchanged
In what circumstances would lenders most benefit?
A. When there is an anticipated decrease in inflation. B. When there is an unanticipated increase in inflation. C. When there is an anticipated increase in inflation. D. When there is an unanticipated decrease in inflation.