If a fall in the price of good A increases the quantity demanded of good B
A) A and B are substitutes.
B) A and B are complements.
C) A is a substitute for B, but B is a complement to A.
D) B is a substitute for A, but A is a complement to B.
B
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Everything else held constant, when prices in the art market become more uncertain
A) the demand curve for bonds shifts to the left and the interest rate rises. B) the demand curve for bonds shifts to the left and the interest rate falls. C) the demand curve for bonds shifts to the right and the interest rate falls. D) the supply curve for bonds shifts to the right and the interest rate falls.
If AE > Y, which of the following will NOT occur?
A) inventories will decline B) actual investment will be more than planned investment C) employment will increase D) GDP will increase
Economic growth causes the PPF to
A) shift leftward. B) shift rightward. C) remain constant. D) go from a straight line to a curve.
Demand is a schedule that shows
A) a set of possible prices for a good and the quantities of the good that will be purchased at each of those prices. B) how much income it takes to afford various quantities of a good. C) the relationship between the cost of producing a good and the price that sellers will charge. D) how population changes will affect the amount of a good that is needed.