If the price of ice cream increases and the quantity demanded decreases, economists would describe ...

If the price of ice cream increases and the quantity demanded decreases, economists would describe this as:
 a. a change in demand.
 b. a change in quantity demanded.
 c. a change in consumer income.
 d. a change in one of the variables that shift demand.

Question 2

Increases in the capital stock:
 a. Shift the short run aggregate supply curve to the right.
 b. Shift the long run aggregate supply curve to the right.
 c. Shift both short run and long run aggregate supply curves to the right.
  d. Do none of the above

Question 3

The Keynesian aggregate expenditures model assumes that price level is constant.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

If an increase in the price of Product X causes an increase in the demand for Product Y, we can conclude that:
 a. Products X and Y are complements.
  b. Products X and Y are substitutes.
 c. Products X and Y are normal goods.
  d. The price of Product Y will decrease.

Question 5

In the long run, a decrease in the price level:
 a. leaves output prices unchanged relative to input prices.
  b. decreases the profit margins of many producers.
 c. decreases RGDP supplied.
 d. Does none of the above

Question 6

If German imports of French products are very important in determining the volume of German exports to France, we would expect the actual German spending multiplier to be larger than 1/(marginal propensity to save + marginal propensity to import).
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

Assuming that Chinese food and Thai food are substitutes, if P. F. Chang's Chinese Restaurant reduces its prices:
 a. the sales of the nearby Bahn Thai restaurant will increase.
 b. demand for meals at P. F. Chang's will increase.
 c. the demand for meals at the Bahn Thai restaurant will decrease.
  d. the quantity of food demanded from P. F. Chang's will decrease.

Question 8

In the long run, an increase in the price level:
 a. increases output prices relative to input prices.
  b. increases the profit margins of many producers.
  c. increases RGDP supplied.
 d. Does none of the above.

Question 9

An increase in U.S. imports from Mexico will cause a decrease in income for Mexican individuals and businesses.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

Suppose the price of gasoline and other petroleum products decline sharply. Which of the following will most likely occur as a result of the lower petroleum prices?
 a. an increase in demand for solar heating systems
 b. an increase in demand for larger, more powerful automobiles
  c. an increase in demand for home insulation products
 d. an increase in demand for gasoline

Question 11

In the short run, a decrease in the price level:
 a. decreases output prices relative to input prices.
  b. increases the profit margins of many producers.
  c. decreases RGDP supplied.
 d. both (a) and (c)

Question 12

In reality, the simple spending multiplier 1/(MPS+MPI) is applicable only to countries whose imports are a substantial fraction of income in foreign countries.
 a. True
  b. False
  Indicate whether the statement is true or false