Author Question: If the quantity of a good exchanged increased, a. It would also increase the price if it was caused ... (Read 81 times)

Sportsfan2111 · **on:** Jun 30, 2018

If the quantity of a good exchanged increased,
a. It would also increase the price if it was caused by a shift in demand.
b. It would also increase the price if it was caused by a shift in supply.
c. We would not know how price would change if we didn't know whether it was due a shift in demand or a shift in supply.
d. Answers a. and c. would both be true.

Question 2

If the MPC = 3/4, an increase in government purchases of 40 billion will ultimately lead to:
a. a 160 billion increase in aggregate demand.
b. a 40 billion increase in aggregate demand.
c. a 30 billion increase in aggregate demand.
d. a 30 billion decrease in aggregate demand.