If autonomous consumption decreases, then
A. There will be a movement to the left along the AD curve.
B. The AD curve will not be affected.
C. The AD curve will shift to the right.
D. The AD curve will shift to the left.
Answer: D
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The multiplier is 5 and, as a result of a change in expenditure, equilibrium expenditure and real GDP change by $200 billion. What was the initial change in autonomous expenditure?
A) $20 billion B) $50 billion C) $1,000 billion D) $40 billion E) $200 billion
Composites of stock prices
A. are completely random and unpredictable. B. fluctuate randomly around a rising trend. C. are destabilized by speculations. D. show no trend but fluctuate widely.
Relative to a perfectly competitive market, as long as the monopolist does not benefit from substantial economies of scale,
a. price and quantity are higher under monopoly b. price and quantity are lower under monopoly c. quantity is higher and price is lower under monopoly d. quantity is lower and price is higher under monopoly e. there are no differences in price and quantity
Figure 10-3
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In Figure 10-3, we would expect the aggregate supply curve in graph (b) to eventually
A. shift to the right, eliminating the recessionary gap. B. shift to the left, eliminating the inflationary gap. C. become steeper in the upper portion, eliminating the inflationary gap. D. become flatter in the upper portion, eliminating the recessionary gap.