Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. Assume the market is initially at Point B and that pizza is a normal good. An increase in income would cause the market to move from Point B on demand curve D2 to
A. Point C on demand curve D2.
B. demand curve D1.
C. Point A on demand curve D2.
D. demand curve D3.
Answer: D
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Along a short-run aggregate supply curve, a decrease in the price level means that
A) more output is produced as consumer demand increases. B) less output is produced as firms decrease production. C) more output is produced as firms increase production because wages fall more than the price level falls, making it profitable to hire more workers. D) output does not change because firms do not change the quantity they produce.
Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the ________
A) right; right B) right; left C) left; right D) left; left
Which of the following will most likely increase aggregate demand?
a. a decrease in stock market prices b. a lower real interest rate c. a decrease in the expected inflation rate d. a decrease in real GDP
The slope of an indifference curve
A. is the rate at which the consumer is willing to exchange one good for another, utility held constant. B. shows the rate at which the consumer is able to substitute goods in the market. C. shows the change in utility from an additional unit of the good. D. is equal to the price ratio at all points. E. all of the above