The aggregate supply curve cannot tell us
A) how the total dollar values of spending will ultimately be divided between output and prices.
B) how changes in the price level affect quantity demanded of all commodities.
C) what the effect of changes in interest rates will be on real GDP.
D) anything about the quantity demanded of all commodities and the price level.
A
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The income effect of a price increase causes a decrease in the quantity of a normal good demanded
Indicate whether the statement is true or false
Which of the following is not counted as part of M1?
a. Coins. b. Federal Reserve notes or " paper money." c. Passbook savings deposits. d. Checkable deposits.
Robbery reduces economic efficiency by
a. creating voluntary exchanges b. decreasing government spending c. increasing unemployment d. creating involuntary exchanges e. lowering the number of potential Pareto improvements
In order to practice price discrimination, a firm must be in a market such that the consumers in its market:
A. all have identical tastes. B. all have identical price elasticities of demand. C. have different price elasticities of demand. D. have the same demand for its product.