Biology Forums - Study Force

To find the market demand curve for a product, we sum the individual demand curves
 a. vertically.
 b. diagonally.
 c. horizontally.
 d. perpendicularly.

Question 2

Which of the following decreases U.S. aggregate demand?
 a. a lower price level, increasing citizen's real wealth
 b. a lower price level, reducing interest rates
 c. a lower price level, increasing exports and decreasing imports
  d. None of the above decrease U.S. aggregate demand.

Question 3

If an economy consumes 75 percent of any increase in real GDP and spends 10 percent of this increased income on imports, then a decline in government spending by 60 million will result in a total reduction in equilibrium income of:
 a. 171.43 million.
  b. 123.47 million.
  c. 151.63 million.
  d. 73.47 million.
  e. 71.43 million.

Question 4

A downward-sloping demand curve illustrates
 a. that demand increases.
 b. that prices fall.
 c. the relationship between income and demand.
  d. the law of demand.

Question 5

Which of the following increases U.S. aggregate demand?
 a. a lower price level, increasing citizen's real wealth
 b. a lower price level, reducing interest rates
 c. a lower price level, increasing exports and decreasing imports
  d. None of the above

Question 6

In a closed economy that does not have international trade, the spending multiplier equals _____.
 a. 1/MPS
  b. 1/MPC
  c. 1/(MPC-1)
  d. 1/(1-MPS)
  e. 1/(1+MPS)

Question 7

Which of these statements best represents the law of demand?
 a. When buyers' tastes for a good increase, they buy more of the good.
 b. When the size of the consumer population rises, buyers purchase more of most goods.
  c. When the price of a good decreases, buyers purchase more of the good.
 d. Changes in preferences lead to changes in demand.

Question 8

Which of the following increases U.S. aggregate demand?
 a. a lower price level, increasing citizen's real wealth
 b. a lower price level, reducing interest rates
 c. a lower price level, increasing exports and decreasing imports
  d. an increase in Americans' expected future incomes

Question 9

In an economy that has no foreign trade, if real GDP declines by 160 million following a decline in investment spending of 40 million, then the marginal propensity to consume must be equal to _____.
 a. 2
  b. 0.33
  c. 4
  d. 0.75
  e. 0.4

Question 10

The law of demand states that, ceteris paribus, an increase in
 a. price causes quantity demanded to increase.
  b. price causes quantity demanded to decrease.
  c. quantity demanded causes price to increase.
  d. quantity demanded causes price to decrease.

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So that's it? I get an expert answer then we move on with our lives? Not too bad :D