An increase in real disposable income will:
a. increase the value of net exports of a country.
b. decrease the value of net exports of a country.
c. increase government purchases.
d. decrease government purchases.
e. increase net taxes.
b
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In the fooling model, AD/SAS equilibria to the left of LAS are unstable because ________ nominal wages shift ________
A) falling, AD downward B) falling, SAS downward C) rising, AD upward D) rising, SAS upward
At any point below the current IS curve, there is an
A) excess demand for goods. B) excess supply of goods. C) excess demand for money. D) excess supply of money.
The output effect describes the situation when a monopolist sells more output and, all else equal, total revenue
a. increases. b. decreases. c. is unchanged. d. is maximized.
Which of the following results from an increase in the price of a one-week vacation at beach resorts on the coast of Mexico?
a. An increase in the supply of bicycle tires in Toledo, Ohio. b. A decrease in the demand for vacations at resorts on Caribbean islands. c. An increase in the supply of vacation opportunities at resorts on the coast of Mexico. d. An increase in the demand for vacations at resorts on Caribbean islands.