For a given level of inflation, if a rise in the stock market makes consumers more willing to spend, known as the wealth effect, then the ________ shifts ________.
A. short-run aggregate supply line; downward
B. aggregate demand curve; right
C. aggregate demand curve; left
D. short-run aggregate supply line; upward
Answer: B
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If national saving (S) is $100,000, net taxes (T) equal $100,000 and government expenditure (G) is $25,000, how much are households and businesses saving?
A) $25,000 B) $225,000 C) -$25,000 D) none of the above
The impact of technological change in the health care area has been to
A) reduce the quality of health care while raising the costs. B) reduce the cost of health care. C) increase the quality of health care while decreasing the costs. D) increase both the quality of health care and the costs of health care.
Ten cases of spring water are sold for $6 each, and the marginal product of the last unit of labor is 5 . If the price of a case increases from $6 to $8, then the marginal revenue product of the last unit of labor would
a. decrease by $10. b. increase by $40. c. decrease by $30. d. increase by $10. e. not change.
According to the law of demand, during a given period of time, the quantity of a good demanded
A. Does not change when price changes. B. Increases as its price falls, ceteris paribus. C. Decreases as its price falls, ceteris paribus. D. Increases as its price rises, ceteris paribus.