Refer to the accompanying figure. Suppose the solid line represents the current supply of Star Wars action figures. If retailers learn that a new Star Wars movie will be released in several months, this news is likely to cause:
A. neither a change in supply nor a change in quantity supplied since only future demand will change.
B. a decrease in the quantity supplied, but no change in current supply.
C. current supply to shift to S(B) in anticipation of higher future prices.
D. current supply to shift to S(A) in anticipation of higher future prices.
Answer: D
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The primary difference between the aggregate demand curve and an individual demand curve is that
A. the aggregate demand curve represents total planned expenditures on all goods and services while an individual demand curve represents a single good or service. B. a change in the price level will shift the aggregate demand curve but not an individual demand curve. C. the aggregate demand curve is vertical in the long? run, while an individual demand curve is downward sloping. D. a change in real balances will shift an individual demand curve but not the aggregate demand curve.
Which of the following would increase aggregate supply?
A) increased training and education B) a reduction in input prices C) a discovery of new raw materials D) all of the above
When interest rates go up, people are
a. more likely to borrow b. less likely to borrow c. does not affect a person's consumption d. None of the above
A good bit of management jargon often simply symbolizes fundamental economic analysis
Indicate whether the statement is true or false