If aggregate demand shifts inward over a long period of time, with aggregate supply held constant, the economy should experience
a. unemployment.
b. recession.
c. stagflation.
d. inflation.
e. budget surpluses.
b
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The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. If Scott offers two swim tours per week, he incurs a marginal cost of
A) more than $30. B) $30. C) $20. D) $10. E) $2.
Marginal thinking is best demonstrated by: a. choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time. b. deciding to never purchase a coat made with animal skins or furs
c. acquiring all the information relevant to a choice before making that choice. d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.
According to the equation of exchange, if total output and velocity are constant, a 20 percent increase in the money supply leads to
a. a 20 percent decrease in the price level. b. less than a 20 percent decrease in the price level. c. less than a 20 percent increase in the price level. d. a 20 percent increase in price level.
If the demand for a good falls when income falls, then the good is called an inferior good
a. True b. False Indicate whether the statement is true or false