An increase in the price level causes a movement down the aggregate demand curve
Indicate whether the statement is true or false
FALSE
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When the government sets a price floor which is below the equilibrium price
A. a price ceiling will follow. B. a shortage will develop. C. a surplus will develop. D. the equilibrium price will be maintained.
If consumers suddenly have a greater desire for energy drinks, the price of energy drinks will likely ________ and producers will ________ production
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
One reason given for the U.S. productivity slowdown in the period from 1973-1995 was
a. declining energy prices. b. increasing energy prices. c. increasing investment spending. d. increasing government spending.
If the marginal propensity to consume is 0.5, the marginal propensity to save is 0.5.
Answer the following statement true (T) or false (F)