The aggregate demand curve will shift to the right ________ the initial increase in government purchases
A) by less than
B) by more than
C) by the same amount as
D) sometimes by more than and other times by less than
B
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Graphically long-run equilibrium occurs at the intersection of the aggregate demand curve and the:
A. expenditure line. B. long-run aggregate supply line. C. short-run aggregate supply line and the long-run aggregate supply line. D. short-run aggregate supply line.
Recall the Application about the demand and price for margarine to answer the following question(s).Recall the Application. Between 2000 and 2009, total U.S. consumption of margarine ________ and the price, in real terms, ________.
A. doubled; doubled B. decreased by roughly half; decreased by roughly half C. decreased by roughly half; stayed roughly the same D. doubled; stayed roughly the same
Which of the following is not a primary cause of business cycle fluctuations, according to real business cycle theory?
A. A change in the money supply B. A change in the size of the labor force C. A change in the real quantity of government purchases D. A change in the production function
If the demand elasticity for a product is -2, and a profit-maximizing firm sells the product for $10, its marginal cost must be
A) $5. B) $10. C) $15. D) $8.