The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from
A) D0 to D1.
B) D1 to D0.
C) S0 to S1.
D) S1 to S0.
A
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The long-run aggregate supply curve represents:
A. potential output in the economy. B. the level of output possible if the economy is operating at full capacity. C. a production function for the entire economy. D. All of these are true.
In a supply-and-demand model of a labor market, which of the following should move toward an equilibrium wage and quantity?
a. cyclical unemployment b. the labor market c. the macro economy d. sticky downward wages
In the 1990s, the United States benefited from a series of favorable supply shocks. This caused a(n)
a. increase in inflation and unemployment. b. decrease in inflation and unemployment. c. increase in inflation and a decrease in unemployment. d. decrease in inflation and an increase in unemployment.
A local restaurant offers an "all you can eat" Sunday brunch for $12. Susan eats four servings but leaves half of a fifth helping uneaten. Why?
What will be an ideal response?