At the unique point of consumer equilibrium, the:
a. distance between indifference curves is maximum.
b. distance between the budget line and the indifference curve is maximum.
c. marginal utility ratio of the two goods is equal.
d. marginal rate of substitution (MRS) equals the slope of the budget line.
d
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Interest rates in the economy have fallen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise. B) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall. C) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise. D) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
The Tea Act:
a. raised the price of tea to colonists. b. allowed for more "middlemen" to be involved in the exportation of tea from India to America. c. made tea an "enumerated good" under the Navigation Acts. d. harmed smugglers of Dutch tea.
Countries with reliable phone service have difficulty not only communicating, but also reaping the benefits of other technology advances, such as the Internet
a. True b. False
In the aggregate expenditures model, if an economy operates above equilibrium GDP, there will be:
a. unplanned inventory depletion. b. an increase in GDP. c. an increase in employment. d. a decrease in GDP.