The total demand line will shift whenever:
A) the MPC increases.
B) output changes.
C) there is an exogenous change in one of its components (C, I, G, or X).
D) aggregate supply increases there is an exogenous change in one of its
Ans: C) there is an exogenous change in one of its components (C, I, G, or X).
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Empirical evidence indicates that imposing taxes on polluting emissions by firms
a. has no effect on the amount of pollution emitted. b. does not give the government leeway to regulate more dangerous emissions differently than less dangerous emissions. c. does reduce the amount of pollution emitted. d. discourages firms from investing in new methods of pollution abatement.
If the money supply equals 2,000, velocity equals 3, and real GDP equals 4,000, then the price level equals:
A. 6,000. B. 2. C. 3. D. 1.5.
A share of stock
A. is a fractional ownership of the firm. B. does not promise a fixed annual payment. C. gives the owner with other owners the right to pick the management of the company. D. all of the above.
Mr. Samuelson's current rates of purchase are such that the marginal utility of slacks is 18 and the marginal utility of ties for him is 5. If slacks and ties are priced at $12 and $2 respectively, it can be concluded that Mr. Samuelson:
A. Is spending too much on slacks and not enough on ties B. Is spending too much on ties and not enough on slacks C. Is spending his income in such a way as to maximize his satisfaction D. Should buy six times as many ties as he does slacks