Graphically, consumer surplus is the area:
a. above the demand curve.
b. below the supply curve.
c. under the demand curve and the supply curve.
d. above the market supply curve and under the equilibrium price.
e. under the market demand curve and above the equilibrium price.
e
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Unemployment or underemployment of labor might explain why an economy would be operating inside its production possibilities curve (PPC)
a. True b. False Indicate whether the statement is true or false
The equilibrium output level in the country of Plutonia is $44 billion, while its potential output is $74 billion. Suppose the central bank of the country implements an expansionary monetary policy. Which of the following is likely to occur?
a. An increase in interest rates will stimulate investment, shifting the aggregate demand curve to the right. b. A reduction in interest rates will stimulate investment, shifting the aggregate demand curve to the right. c. A reduction in interest rates will lower investment, shifting the aggregate demand curve to the left. d. An increase in interest rates will lower investment, shifting the aggregate demand curve to the left.
Other things the same, when the price level rises, interest rates
a. rise, which means consumers will want to spend more on homebuilding. b. rise, which means consumers will want to spend less on homebuilding. c. fall, which means consumers will want to spend more on homebuilding. d. fall, which means consumers will want to spend less on homebuilding.
_______________________: A group of theories which attempt to explain the voting behaviors of voters & politicians
Fill in the blank(s) with the appropriate word(s).