A downward shift of the planned expenditure curve resulting from an increase in the price level corresponds to
A) a movement up along the aggregate demand curve.
B) a movement down along the aggregate demand curve.
C) an increase in aggregate demand.
D) a decrease in aggregate demand.
A
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A key element of real business cycle theory is that
a. labor supply is not responsive to changes in real wages. b. labor supply is highly elastic. c. as the wage increases, workers are richer and work less. d. none of the above.
Suppose a cost function is TC = Aq3 + bq2 + cq + d. Then the total fixed cost is
a. Aq2 + bq + cq +d/q b. Aq2 + bq + c c. Aq3 + bq2 + cq d. d
Monetary policy actions by the Fed are:
A. More effective in a restrictive direction than they are in an expansionary direction B. More effective in an expansionary direction than they are in a restrictive direction C. Equally effective in both expansionary and restrictive directions D. Only effective when coupled with fiscal policy actions
Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. The area of [E + F + G] represents
A. consumer surplus. B. producer surplus. C. consumer surplus minus producer surplus. D. consumer surplus plus producer surplus.