If product Y is an inferior good, a decrease in consumer incomes will:
A. Make buyers want to buy less of Product Y
B. Not affect the sales of product Y
C. Shift the demand curve for product Y to the left
D. Shift the demand curve for product Y to the right
Answer: D
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The appearance of "classical American capitalism" in the middle and late 19th century includes all of the following except
(a) An industrial labor force concentrated in manufacturing centers (b) The commercialization of agriculture and extractive industries (c) The rise of big-time finance and giant transportation systems (d) The strengthening of small scale family farm enterprises and hand-crafted production activities
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). c. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). e. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
A tax on buyers shifts the demand curve and the supply curve
a. True b. False Indicate whether the statement is true or false
One major difference between the aggregate supply curve and an individual supply curve is the aggregate supply curve represents:
A. goods and services sold rather than the total actually produced by each firm. B. production in an entire market rather than just one firm. C. goods and services produced and actually sold by each firm. D. production in the economy as a whole rather than just one good or service.