As the price level falls and other things remain the same, real wealth ________ and ________
A) decreases; the short-run aggregate supply decreases
B) decreases; the quantity of real GDP demanded decreases
C) increases; aggregate demand increases
D) increases; the quantity of real GDP demanded increases
D
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for blu-ray discs. Which panel best describes what happens in this market if there is a substantial increase in the price of blu-ray players?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets imported?
What will be an ideal response?
How does an increase in the price level affect the aggregate planned expenditure curve and the aggregate demand curve?
What will be an ideal response?
If Jane's marginal benefit as a consumer in the jeans market is larger than the price of a pair of jeans:
a. Jane will not purchase any more jeans. b. Jane can benefit by purchasing more jeans. c. the opportunity cost of a pair of jeans is lower than the price. d. Jane will decrease her total utility by purchasing more jeans.