A leftward shift in the aggregate supply curve along a fixed aggregate demand curve will cause cost-push inflation
a. True
b. False
Indicate whether the statement is true or false
True
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An increase in consumer spending based on an increase in income is reflected by
A) an upward rotation of the consumption function. B) a downward shift in the consumption function. C) a movement up along the consumption function. D) an increase in the MPC.
Over the range of output for which the average product of labor curve is negatively sloped, the average variable cost curve is positively sloped
Indicate whether the statement is true or false
Suppose all prices decrease by 5 percent in the year while the total sales of laptops remain constant. This is
A) a violation of the law of demand since fewer laptops should be purchased at a higher price. B) a violation of the law of demand since more laptops should have been purchased with higher incomes. C) not a violation of the law of demand since the relative price of laptops did not change. D) not a violation of the law of demand since the law of demand does not apply to expensive goods like laptops.
An example of an external cost of tobacco is
A. increase life insurance premiums of smokers. B. cigarette burns on the furniture of smokers. C. unnecessary deaths induced by second-hand smoke. D. matches.