One of the reasons why higher prices affect the quantity of real output demanded is
a) at higher prices, business people become richer, so demand rises
b) at higher prices, real household wealth is reduced, so the quantity of output demanded falls
c) when prices are high, consumers fear that a recession is approaching
d) when pricing are rising, the central bank tends to reduce interest rates, thereby reducing demand
e) at higher prices, time becomes more valuable, so people buy now instead of later
b) at higher prices, real household wealth is reduced, so the quantity of output demanded falls
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Marginal decision-making is best demonstrated by: a. choosing to spend one more hour studying economics because the improvement in scores on the next quiz will be worth the sacrifice of time. b. deciding to never purchase a coat made of animal skin or fur
c. acquiring the information relevant to a choice before making that choice. d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.
The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force
a. True b. False Indicate whether the statement is true or false
Which of the following combinations is plausible for a nation's balance of payments? (All numbers in billions.)
A. current account = -40, financial account = -40 B. current account = -50, financial account = -50 C. current account = 10, financial account = 0 D. current account = 50, financial account = -50
Assuming inflexible prices, if the demand for many goods and services falls across the entire economy and for ' an. extended period of time:
A)many firms will face with an inventory pile up and will be forced to cut production. B) many firms will face a constant reduction in their inventories and will be forced to hire more workers. C) many firms will face a constant reduction in their inventories. D) many firms will face with an inventory pile up and will be forced to hire more workers.