Assuming bottled water and cola are substitutes, if the price of bottled water rises
A) there is a movement along the demand curve for cola.
B) the demand curve for bottled water will shift to the right.
C) the demand curve for cola will shift to the right.
D) the demand curve for bottled water will shift to the left.
Answer: C
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Which of the following assumptions were made by the Cournot model of oligopoly?
a. Each seller psychoanalyzes the competition and decides how to react in all possible situations. b. Each seller psychoanalyzes the competition and exactly predicts the output decisions of the competitors. c. Each seller chooses its own output and believes the others in the market will respond to its choices. d. Each seller chooses its own output and believes the others in the market will not respond to its choices.
For a given price level, the aggregate expenditure line relates unplanned spending to the level of government investment in the economy
Indicate whether the statement is true or false
When the money market is drawn with the value of money on the vertical axis, the price level decreases if
a. either money demand or money supply shifts right. b. either money demand or money supply shifts left. c. money demand shifts right or money supply shifts left. d. money demand shifts left or money supply shifts right.
Cyclical unemployment is caused by fluctuations in economic activity.
Answer the following statement true (T) or false (F)