How do price-level factors that change total spending in an economy affect the aggregate demand curve?
a. The curve becomes perfectly vertical.
b. The entire curve shifts leftward or rightward.
c. The entire curve develops an upward slope.
d. There is movement along the curve.
d. There is movement along the curve.
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When an American college student in Davis, California spends $200 on a pair of Louis Vuitton jeans (a famous French brand), U.S. consumption ________, U.S. net exports ________, and U.S. GDP ________
A) does not change; increases by $200; increases by $200 B) increases by $200; decreases by $200; does not change C) increases by $200; does not change; increases by $200 D) does not change; does not change; does not change E) does not change; decreases by $200; decreases by $200
When firms price discriminate they
A) sell to new consumers who would not have bought at the profit-maximizing uniform price but lose sales to existing consumers because of the higher prices. B) sell to new consumers that would not have bought at the profit-maximizing uniform price. C) lose surplus from consumers who would have bought at the profit-maximizing uniform price. D) None of the above.
By comparing marginal revenue and marginal cost, a firm in a competitive market is able to adjust production to the level that achieves its objective, which we assume to be
a. maximizing total revenue. b. maximizing profit. c. minimizing variable cost. d. minimizing average total cost.
Between 1994 and 2000 the poverty rate ____ and the number of people on welfare ______.
A. declined; declined B. rose; rose C. rose; declined D. declined; rose