If a reduction in stock prices reduces the real wealth of Americans, the
a. aggregate demand curve will shift to the left.
b. long-run aggregate supply will shift to the left.
c. general price level will increase.
d. aggregate demand curve will shift to the right.
A
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The marginal propensity to save is 0.2. Equilibrium real GDP will decrease by $50 billion if aggregate expenditures schedule decrease by
A. $15 billion. B. $10 billion. C. $16 billion. D. $40 billion.
Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point b represents
A) a decrease in quantity demanded. B) an increase in demand. C) an increase in quantity demanded. D) a decrease in demand.
In monopolistic competition, an increase in a firm's advertising
A) has no effect on its average cost curves. B) has no effect on demand. C) increases the firm's average total cost. D) increases the firm's marginal cost.
Fill in the table.
