For a typical product, an increase in consumer income will cause the market demand for the product to
a. decrease, which is a shift to the left of the demand curve.
b. decrease, which is a shift to the right of the demand curve.
c. increase, which is a shift to the left of the demand curve.
d. increase, which is a shift to the right of the demand curve.
D
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In a world without transactions costs, how will a change in property rights affect
(i) economic efficiency, (ii) the distribution of income, and (iii) the allocation of resources? Explain, using the Weak and Strong Coase Theorems.
If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
a. make it easier for the Fed to properly time changes in monetary policy. b. make it more difficult for the Fed to properly time changes in monetary policy. c. not affect the Fed's ability to time monetary policy changes correctly. d. make it easier for the Fed to control inflation and achieve price stability.
Which of the following sequences best explains the negative slope of the aggregate-demand curve?
a. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ? b. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ? c. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ? d. price level ? ? equilibrium interest rate ? ? demand for money ? ? quantity of goods and services demanded ?
Stabilization policies are government policies used to affect ________, with the objective of eliminating output gaps.
A. diminishing returns to capital. B. labor productivity. C. planned aggregate expenditure D. potential output.