Which of the following statements is FALSE about the demand curve?
A) An increase in demand shifts the demand curve to the left, closer to the price axis.
B) When only the price of a good changes, there is movement along the demand curve but no change in demand.
C) A change in demand is graphically shown by shifting the entire demand curve.
D) When demand decreases, there is a drop in the quantity demanded at each price.
Answer: A
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The idea that expected future increases in output cause increases in the current money supply and that expected future decreases in output cause decreases in the current money supply, rather than the other way around, is known as
A) Granger causality. B) money neutrality. C) nominal adjustment. D) reverse causation.
Suppose the demand curve and the supply curve in a market are both linear. If a $2 tax per unit results in a deadweight loss of $200, how large would be the deadweight loss from a $3 tax per unit?
A good provides __________ and a bad provides __________
A) utility; satisfaction B) disutility; utility C) dissatisfaction; satisfaction D) utility; disutility E) satisfaction; utility
Suppose the price level in Germany rises, ceteris paribus. This ________________ United States net exports, ultimately shifting the United States AD curve ____________________
A) stimulates; rightward B) stimulates; leftward C) depresses; rightward D) depresses; leftward.