A decrease in quantity demanded because of an increase in price is represented by a
A) rightward shift of the demand curve.
B) leftward shift of the demand curve.
C) movement up and to the left along the demand curve.
D) movement down and to the right along the demand curve.
C
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In terms of the Phillips curve, the experience of the 1970s indicates that macro-policy
a. can permanently reduce unemployment if we are willing to tolerate higher inflation. b. can reduce unemployment in the long run if we are willing to tolerate higher inflation. c. may be able to reduce unemployment but cannot retard inflation. d. may be able to reduce unemployment in the short run, but there is little evidence that expansionary policies can reduce unemployment permanently.
If the Fed wanted to target price stability, meaning zero inflation, why should it set a target rate of inflation of around one percent?
What will be an ideal response?
If the cost of producing automobiles increases, the price, equilibrium quantity and consumer surplus will most likely change in which of the following ways?
What will be an ideal response?
If Canada has a comparative advantage over Mexico in the production of timber, then
A) the explicit cost of production for timber is lower in Canada than in Mexico. B) the opportunity cost of production for timber is lower in Canada than in Mexico. C) the implicit costs of production for timber are higher in Canada than in Mexico. D) the average cost of production for timber is lower in Canada than in Mexico.