If potential output exceeds actual output, the aggregate demand curve shifts downward over time.
Answer the following statement true (T) or false (F)
False
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If in the market for oranges the supply has increased, then
A) the supply curve for oranges has shifted to the left. B) the supply curve for oranges has shifted to the right. C) there has been a movement upwards along the supply curve for oranges. D) there has been a movement downwards along the supply curve for oranges.
As the price of a good declines, a utility-maximizing consumer will respond by purchasing more of that good
a. True b. False Indicate whether the statement is true or false
Suppose you sell surfboards for a living, and you expect the price of surfboards to increase at the same rate as inflation; you adjust your prices accordingly. If this does not occur, then it must be true that:
A. the inflation rate is different from what was expected. B. the relative price of surfboards is changing. C. the price of surfboards is changing at a rate that is different from what was expected. D. both the price of surfboards and the inflation rate are different from what was expected.
(Consider This) North Korea's command economy:
A. is one of the few remaining command economies. B. has grown much faster than South Korea's economy since the two countries were divided after World War II. C. produces a per capita GDP of nearly $25,000. D. has undergone significant market reforms and is now one of the fastest-growing economies.