Assume the economy is at point D. What would happen to AD2 and the point of equilibrium if P increased to 110 while the autonomous parts of consumption, investment, government purchases, and net exports remained constant?
a. AD2 would shift right, and the point of equilibrium would move right.
b. AD2 would shift left, and the point of equilibrium would move left.
c. AD2 would not move, but the point of equilibrium would move left.
d. AD2 would not move, but the point of equilibrium would move right.
c. AD2 would not move, but the point of equilibrium would move left.
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Which of the following was signed in the Kyoto Protocol?
A) the Framework Convention on Climate Change B) the Zero Greenhouse Gas Agreement C) the Treaty on Global Warming D) the Emission Trading Scheme
The unemployment rate can remain below the natural rate, but only _____
a. in the long run b. with continuous deflation c. with a continuously increasing inflation rate d. with a series of adverse supply shocks e. if the money supply is constant
Providing training for unemployed individuals is primarily intended to reduce
a. frictional unemployment. b. seasonal unemployment. c. structural unemployment. d. cyclical unemployment.
Economists usually assume that people act in a rational, self-interested way. In explaining how consumers make choices this means that economists believe
A) consumers will always buy goods and services at the lowest possible prices. B) consumers spend their incomes to order to accumulate the most goods and services. C) consumers make choices that will leave them as satisfied as possible given their incomes, tastes, and the prices of goods and services available to them. D) consumers will spend their incomes and time on activities that benefit themselves as much as possible, without regard to the welfare of others.