A decrease in the price level in the United States will have what effect on the aggregate expenditure line?
A) Aggregate expenditure will shift downward.
B) Aggregate expenditure will shift upward.
C) Aggregate expenditure will become steeper.
D) Aggregate expenditure will not be affected by a decrease in the price level in the United States.
B
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A technological improvement can cause the production possibilities curve to shift outward because
A) it increases costs and contributes to lower production rates. B) maximum feasible outputs of both goods increase. C) production will fall, but jobs will be saved. D) it causes increases in unemployment.
A "war on drugs" is waged, and, as a result, a larger quantity of drugs flowing into the United States is seized and more drug traffickers are arrested. If demand for drugs is relatively elastic, one would expect the total expenditure on drugs to: a. decrease
b. increase. c. stay constant. d. There is not enough information available to make a determination.