When an economist says that the demand for a product has increased, this means that:
A. consumers are now willing to purchase more of this product at each possible price.
B. the product has become particularly scarce for some reason.
C. product price has fallen and, as a consequence, consumers are buying a larger quantity of
the product.
D. the demand curve has shifted to the left.
Answer: A
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When the demand for a good is inelastic and its price increases, the total revenue from the sale of the good will ________
A) increase B) decrease initially and then increase C) decrease D) not change
Refer to Figure 17-1. What should the Federal Reserve do if it wants to move from point A to point C in the short-run Phillips curve depicted in the figure above?
A) raise taxes B) raise the discount rate C) buy treasury bills D) sell treasury bills E) decrease the money supply
Refer to Figure 11-2. Diminishing returns to labor set in
A) after L1. B) after L2. C) after L3. D) immediately.
When aggregate expenditure = GDP
A) net exports equal zero. B) macroeconomic equilibrium occurs. C) saving equals zero. D) the federal budget is balanced.