An increase in the price level causes a ________ the IS curve and a ________ the aggregate demand curve
A) movement up along; movement down along
B) shift to the right of; movement down along
C) movement down along; movement down along
D) shift to the left of; movement up along
C
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Describe the alternative methods of allocating scarce resources
What will be an ideal response?
If the demand for a good increases, the
a. demand for labor producing the good will increase b. demand for labor producing the good will decrease c. marginal labor cost will increase d. marginal labor cost will decrease e. marginal physical product of labor will increase
In November 2009, Econland Motors produced an automobile that was delivered to a local 25-52 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. dealership in December 2009. The auto was then sold to Sharon Smith for personal use in February of 2010. Following national income accounting practices, this auto would be counted as part of:
A. Consumption in 2009 and consumption in 2010 B. Consumption in 2009 and investment in 2010 C. Negative investment in 2009 and consumption in 2010 D. Investment in 2009 and negative investment in 2010
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential