Considering both the Keynesian and the aggregate demand-supply frameworks, if households as a group experience an increase in wealth at a given price level, then the TE curve shifts __________, the AD curve shifts __________, and Real GDP __________
A) downward; leftward; decreases
B) downward; rightward; decreases
C) upward; rightward; increases
D) upward; leftward; increases
C
You might also like to view...
The indifference curves in the figure above (I1, I2, and I3 ) reflect Peter's consumption preferences. Which of the following combinations of goods does Peter prefer the most?
A) 48 slices of pizza and 12 chocolate bars B) 24 slices of pizza and 24 chocolate bars C) 40 slices of pizza and 20 chocolate bars D) 32 slices of pizza and 8 chocolate bars
Assume that a firm's marginal revenue just barely exceeds marginal cost. Under these conditions the firm should:
a. expand output. b. contract output. c. maintain output. d. There is insufficient information to answer the question.
Refer to the accompanying figure. A decrease in supply is represented by a shift from:
A. curve C to curve D. B. curve A to curve B. C. curve D to curve C. D. curve B to curve A.
Answer the following statements true (T) or false (F)
1) When there are unplanned increases in inventories, then actual investment ends up being less than planned investment. 2) If planned investment is larger than saving, then real GDP will increase as the economy adjusts towards equilibrium. 3) In a closed private economy, an unplanned decrease in inventories will cause firms to increase real GDP. 4) If the MPC in the economy is 0.7 and aggregate expenditures fall by $10 billion, then real GDP will fall by $17 billion. 5) If aggregate expenditures rise by $200 billion and real GDP consequently rises by $500 billion, then the MPC in the economy must be 0.4.