The budget line will shift parallel to the left if:
A. income increases.
B. income decreases.
C. the price of the good on the vertical axis increases.
D. the price of the good on the vertical axis decreases.
Answer: B
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In the early 1990s, European unemployment rose largely because of
A) reductions in stock prices. B) undervalued currencies. C) overvalued currencies. D) high inflation. E) none of the above
If the price elasticity of demand for food is low, an increase in supply due to an improvement in technology will result in a ________ price and ________ in total revenue.
A. lower; a decrease B. higher; a decrease C. lower; an increase D. higher; an increase
Marginal revenue is the addition to a firm's revenue from
a. a $1 change in price. b. a one-unit change in output. c. the sale of inferior output. d. a $1 reduction in marginal cost.
At every point along the aggregate demand curve, GDP and the rate of unemployment remain the same
a. True b. False Indicate whether the statement is true or false