When the price level increases people:

A. feel less wealthy.
B. feel more wealthy.
C. have the same real value of assets, regardless of the change in the price level.
D. experience a bubble forming in the economy overall.


A. feel less wealthy.

Economics

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The largest share of the typical American family budget goes to 

A. goods. B. health care. C. housing. D. transportation

Economics

Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower

Economics

Compared to a firm that has many small plants, a firm with a few large plants is likely to have all of the following except which one?

A) greater managerial diseconomies B) less managerial diseconomies C) fewer inputs D) greater availability of specialized capital

Economics

Refer to the below graph. What will shift D2 to D1?

Use the following graph to answer question about the labor resource market faced by producers of good X:



A. A decrease in the price of a substitute input (if the output effect > substitution effect)

B. An increase in the price of a substitute input (if the substitution effect > output effect)

C. An increase in the price of a substitute input (if the output effect > substitution effect)

D. A decrease in the price of a complementary resource

Economics