Assume D1 represents the current demand curve for skis. Which of the following would most likely cause D1 to shift to D2?
A. An increase in the price of skis
B. A decrease in the price of skis
C. A decrease in the price snowboards
D. An increase in the price of snowboards
Answer: D
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If California were a separate nation, its economy would rank where among nations of the world?
A. Second B. Third C. Fifth D. Sixth
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand falls and aggregate supply rises. b. Aggregate demand rises and aggregate supply rises. c. Aggregate demand falls and aggregate supply falls. d. Neither the aggregate demand nor the aggregate supply change. e. None of the above.
Sales taxes are proportional in relation to income because the same tax rate applies regardless of the size of a purchase.
Answer the following statement true (T) or false (F)
The vertical portion of the AS curve
A. is a short-run phenomenon. B. shows national output rising with the price level. C. does not shift over time, due to economic growth. D. represents the maximum output level.