When the price level falls, the level of planned expenditures ______.
a. rises
b. falls
c. remains constant
d. varies because of other factors
a. rises
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Which of the following is likely to happen due to a contractionary monetary policy?
A) An increase in the inflation rate B) An increase in labor supply C) An increase in the federal funds rate D) An increase in labor demand
The short-run aggregate supply curve shows a(n):
a. direct relationship between the expected price level and nominal GDP supplied. b. inverse relationship between the actual price level and real GDP supplied c. direct relationship between the actual price level and nominal GDP supplied. d. direct relationship between the actual price level and real GDP supplied. e. inverse relationship between the expected price level and real GDP supplied.
If the supply curve and the demand curve both shift to the left, then the new equilibrium:
A. price will be lower, but the direction of the change in quantity is uncertain. B. quantity will be higher, but the direction of the price change is uncertain. C. price will be higher, but the direction of the change in quantity is uncertain. D. quantity will be lower, but the direction of the price change is uncertain.
A movement along the demand curve to the right may be caused by a(n)
A. rise in the price of inputs. B. decrease in income. C. increase in supply. D. fall in the number of substitute goods.