An increase in the quantity demanded of a good is most often due to
a. current prices
b. higher prices
c. higher income
d. lower prices
e. technological change
D
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Every society faces economic trade-offs. This means
A) not everyone can have enough goods to survive. B) some people live better than others do. C) society's output cannot be made available to all. D) producing more of one good means less of another good can be produced.
What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?
A) Demand and supply will both increase. B) Demand will increase, but this will not shift the supply curve. C) Supply will increase, but this will not shift the demand curve. D) Demand will increase and supply will decrease.
Assume that we want to drive our economy out of recession by generating a $400 billion change in real GDP. The MPC is 0.80 . Which of the following policy prescriptions would generate the targeted $400 billion change in income?
a. $120 billion increase in government spending and $50 billion increase in tax revenue. b. $140 billion increase in government spending and $70 billion increase in tax revenue. c. $160 billion increase in government spending and $120 billion increase in tax revenue. d. $220 billion increase in government spending and $100 billion increase in tax revenue. e. $400 billion increase in government spending and $300 billion increase in tax revenue.
The intersection of the aggregate supply curve and the aggregate demand curve occurs at the economy's equilibrium level of
A) real investment and interest rate B) real disposable income and unemployment C) real national output and the price level D) government expenditures and taxes E) imports and exports