An increase in aggregate demand is most likely to cause an increase in the price level when the economy is
a. operating near full employment.
b. on the horizontal part of the aggregate supply curve.
c. operating with high unemployment.
d. operating with substantial excess capacity.
a
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Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then his consumer surplus is
A. $19. B. $0.90. C. $1. D. $90.
Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price.
Select whether the statement is true or false. A. True B. False
Exhibit 6-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 As shown in Exhibit 6-9, the marginal cost of producing the third unit is:
A. $50. B. $16. C. $24. D. $23.
Exhibit 14-2 Cigarette smoking dataJack enjoys smoking, while Jill fears that second-hand smoke will shorten her life. The following table shows the value Jack places on each cigarette he smokes, and the value Jill places on her shortened life. Use the table to answer the following question(s): Quantityof cigarettes Total value to Jackof cigarettes Days of life lost Total value to Jillof days lost 1 $ 50 1 $ 30 2 90 2 60 3 120 3 90 4 140 4 120 5 150 5 150 As shown in Exhibit 14-2, if smokers have the right to smoke as many cigarettes as they wish, and non-smokers have the right to negotiate, how many cigarettes will Jack smoke?
A. 1. B. 3. C. 5. D. more than 5.