Which of the following is evidence that consumption depends on total wealth, and not just on current income?
A) People save very little for their retirement.
B) The pre-announced phased-in tax cuts of 1981-83 caused little change in consumption in 1981.
C) A drop in consumer confidence, with unchanged current income, often causes total consumption spending to fall.
D) all of the above
E) none of the above
C
Economics
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If aggregate demand and aggregate supply both shift left, we can be sure that the price level is higher in the short run.
a. true b. false
Economics
Use the following graph to answer the next question. 
If the industry were served by a pure monopoly, the profit-maximizing price and quantity of output would be ________.
A. P1, Q1 B. P1, Q3 C. P3, Q1 D. P2, Q2
Economics