Author Question: A decrease in the price level will result in: a. a downward shift of the AD curve. b. an upward ... (Read 31 times)

vicotolentino · **on:** Jun 30, 2018

A decrease in the price level will result in:
a. a downward shift of the AD curve.
b. an upward shift of the AD curve.
c. a movement up the AD curve.
d. a steeper slope of the AD curve.
e. a movement down the AD curve.

Question 2

In his book, The Wealth of Nations, Adam Smith made the following observation?
a. There is no such thing as a free lunch.
b. People buy more when prices are low than when prices are high.
c. No matter how much people make, they tend to spend more than they make.
d. People tend to pursue their own personal interest and that an invisible hand (the market) guides their self-interest, increasing social welfare and economic well being.