When income rises for the buyers of good X, the ____________ curve for good X will shift ________________
A) demand; rightward
B) demand; leftward
C) supply; rightward
D) supply; leftward
E) This question cannot be answered unless we know whether good X is a normal good, a neutral good, or an inferior good.
E
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A deliberate change in the government's deficit
A) constitutes discretionary fiscal policy. B) leads to automatic stabilization. C) acts as a drag on the economy. D) is implemented by the Fed.
Which of the following has the highest present value?
A) $1,000 received in 3 years if the current interest rate is 4% B) $1,500 received in 5 years if the current interest rate is 6% C) $2,000 received in 6 years if the current interest rate is 11% D) $3,000 received in 10 years if the current interest rate is 12%
How does a decrease in government spending affect the aggregate expenditure line?
A) It shifts the aggregate expenditure line upward. B) It shifts the aggregate expenditure line downward. C) It increases the slope of the aggregate expenditure line. D) It decreases the slope of the aggregate expenditure line.
The amount of money one would have to take from a consumer to harm her by as much as the price increase is called
A) compensating variation. B) structured settlement. C) equivalent variation. D) consumer surplus.