In a perfectly competitive market, an increase in demand will lead to a long-run increase in the product's price:
A. every time.
B. if the increase in demand for inputs drives up the price of inputs.
C. if the good in question is a Giffen good.
D. if and only if the increase in demand is temporary.
B. if the increase in demand for inputs drives up the price of inputs.
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The purchase of Treasury securities by the Federal Reserve will, in general,
A) increase the quantity of reserves held by banks. B) decrease the quantity of reserves held by banks. C) not change the money supply. D) not change the quantity of reserves held by banks.
If the slope of a linear function changes with no change in the Y-intercept
a. the graph shifts either up or down in a parallel way. b. the graph remains unchanged. c. the graph rotates about its X-intercept. d. the graph rotates about its Y-intercept.
If the prices of inputs changes, what will happen to the aggregate supply curve?
a. It does not move but the economy moves along the curve. b. It depends on whether the input prices rise or fall. c. The curve will become flatter or steeper depending on whether the input prices rise or fall. d. It shifts inward or outward depending on whether the input prices rise or fall.
The largest single component of aggregate demand is ______.
a. investment spending b. exports c. disposable income d. consumption