Other things being equal, the effect of a decrease in the price of DVDs on the market for DVD players is a(n):
a. leftward shift in the demand curve for DVD players.
b. upward movement along the demand curve for DVD players.
c. rightward shift in the demand curve for DVD players.
d. downward movement along the demand curve for DVD players.
c
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When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can offset the effects of rising prices by saving more.
The economy is in equilibrium, TP = TE, and Real GDP is $4,000 billion. The MPC is 0.60, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending rises by $13 billion. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and
Real GDP __________ by __________. A) TE, downward, rise, increase, rises, $32.5 billion B) TE, upward, fall, increase, rises, $101.5 billion C) TE, upward, fall, decrease, rises, $32.5 billion D) TE, upward, fall, increase, rises, $32.5 billion E) TP, upward, fall, increase, rises, $101.5 billion
Answer the following questions true (T) or false (F)
1. Your checking account balance is included in your bank's assets. 2. Consider the following T-account for a bank: Assets Liabilities Reserves $1,000 Deposits $5,000 Loans $4,000 If the required reserve ratio is 20 percent, the bank at this point can make no more loans. 3. Consider the following T-account for a bank: Assets Liabilities Reserves $1,000 Deposits $5,000 Loans $4,000 If the required reserve ratio is 10 percent, the bank at this point can make no more loans.
If supply is highly inelastic and demand shifts to the left:
A. price will hardly change at all; quantity will fall significantly. B. price will fall significantly as will quantity. C. price will fall significantly; quantity hardly changes at all. D. price and quantity will hardly change at all.