In Figure 11.3, the multiplier effect resulting from a change in investment spending is represented as the distance between points
A) a0 and a1. B) y0 and y1. C) a1 and y1. D) C0 and C1.
B
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When inflation expectations changed during the 1967-1971 period, this change led to
A) the short-run Phillips curve shifting upward. B) the short-run and the long-run Phillips curve both shifting upward. C) an increase in the natural unemployment rate. D) the long-run Phillips curve shifting leftward. E) the long-run Phillips curve shifting rightward.
Suppose the price elasticity of demand for your economics textbook is -1 . If the publisher raises the price by 5 percent,
a. revenues will rise 5 percent b. quantity demanded will rise 5 percent c. total revenues will not change d. revenues will fall e. revenues will fall 5 percent
If the Consumer Price Index (CPI) decreases from 100 to 50 and the nominal wage decreases from $200 to $50, what is the change in the real wage in terms of the beginning year's dollars?
a. +$200 b. -$100 c. +$50 d. -$200 e. +$250
If Miguel expects to earn a higher income next month, he may choose to
a. save more now and spend less of his current income on goods and services. b. save less now and spend more of his current income on goods and services. c. decrease his current demand for goods and services. d. move along his current demand curves for goods and services.