The fact that the aggregate demand curve slopes downward means that aggregate expenditures increase when the price level decreases
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose the demand curve for bus travel is downward sloping, and the income elasticity of demand for bus travel is negative.
(i) Design an indifference curve-budget line diagram showing the substitution and income effects created when the price of bus travel falls. In your diagram, place bus travel on the horizontal axis and all other goods on the vertical axis. (ii) How you can tell from your diagram that the income elasticity of demand for bus travel is negative? Explain.
A quasi-public good is similar to a public good in that one person's consumption of the quasi-public good does not reduce the amount available for everyone else
Indicate whether the statement is true or false
Economists refer to the talents, training, and education of workers as:
A. human capital. B. average labor productivity. C. physical capital. D. labor supply.
The aggregate supply curve tells us
A. what the effect of changes in interest rates will be on real GDP. B. the total amount of planned production in an economy. C. how changes in the price level affect the amount paid for all commodities. D. anything about the quantity demanded of all commodities and the price level.