The demand curve for most goods is normally:
A) parallel to the vertical axis. B) parallel to the horizontal axis.
C) upward sloping. D) downward sloping.
D
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Which of the following does not correctly characterize modern economic growth?
A. It has occurred only in the last 200 or so years. B. It has not affected the average lifespan of human beings. C. It drastically alters the culture and politics of society. D. It spread slowly across the globe, with some societies not having experienced it yet.
The equilibrium price level
a. determines by how much the AD curve shifts b. is inversely related to the nominal wage rate c. is influenced by the pricing behavior of all the firms in the economy d. is unaffected by changes in resource costs e. is the same thing as the interest rate
Refer to Figure 11.1. Assume aggregate demand is represented by AD1, full-employment output is $6.0 trillion, and the MPC is 0.75. The spending fiscal stimulus needed to reach full-employment equilibrium is
A. $0.4 trillion B. $2 trillion. C. $1 trillion. D. $0.1 trillion.
Other things being equal, a decrease in the price of ethanol will
A. decrease the use of corn in ethanol production but increase the use of corn in HFCS (another product produced from corn). B. decrease the use of corn in ethanol production and in HFCS. C. decrease the use of corn in all corn uses. D. increase the use of corn in HFCS.