In exhibit 9-2, the marginal propensity to save equals
What will be an ideal response?
0.30
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Use the following graph of the bicycle market to answer the question below.
S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), which point on the graph is most likely to be the new equilibrium after the introduction of technological improvements in bicycle production and successful publicity campaigns by the government on the virtues of bicycling to work?
A. 3 B. 4 C. 5 D. 6
At the natural unemployment rate, there is no
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) unemployment.
In the monetarist view, the long-run Phillips curve is
a. horizontal. b. downward sloping. c. downward sloping but steeper than the short-run curve. d. downward sloping but flatter than the short-run curve. e. none of the above.
Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result
A) the supply curve for sugar will shift to the right. B) the supply curve for sugar will shift to the left. C) the supply curve for cereal will shift to the right. D) the supply curve for cereal will shift to the left.