Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles.
B. an increase in economic growth.
C. an increase in unemployment.
D. a reduction in unemployment.
Answer: A
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What is demand-pull inflation?
What will be an ideal response?
Which of the following is a difference between the income effect and the substitution effect?
a. The income effect refers to the way a change in income alters the buying power of an individual, while the substitution effect occurs when a good becomes cheaper and people seek alternatives. b. The income effect refers to the way a change in price alters the buying power of an individual, while the substitution effect occurs when a good becomes expensive and people seek alternatives. c. The income effect refers to the way a change in price alters the buying power of an individual, while the substitution effect occurs when the opportunity cost of a good increases and people seek alternatives. d. The income effect occurs when a good becomes expensive and people seek alternatives, while the substitution effect refers to the way a change in income alters the buying power of an individual.
Suppose over some period of time the money supply tripled, velocity was unchanged, and real GDP doubled. According to the quantity equation the price level is now
a. 6 times its old value. b. 3 times its old value. c. 1.5 times its old value. d. 0.75 times its old value
What are the human realities of poverty in DVC?
What will be an ideal response?