Which of the following will occur if the supply curve for gasoline shifts to the left?
A. Nothing will happen to the quantity of gasoline used because people are addicted to gasoline.
B. The demand for gasoline will shift to the left as people demand less gasoline.
C. The price of gasoline will fall, and the quantity demanded will rise.
D. The price of gasoline will rise, and the quantity demanded will fall.
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
In the long run, an increase in the growth rate of the money supply causes the inflation rate to ________, which then causes the nominal interest rate to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The number of CDs purchased increased by 50 percent when consumer income increased by 10 percent. Assuming other factors are held constant, CDs would be classified as:
a. social goods. b. normal goods. c. Giffen goods. d. inferior goods.
Which of the following statements is correct? Select one:
a. The human desire for goods and services is limited while the resources required for their production are unlimited. b. The human desire for goods and services is virtually unlimited while the resources required for their production are limited. c. Both the human desire for goods and services and the resources required for their production are virtually unlimited. d. Both the human desire for goods and services and the resources required for their production are limited