If beans are inferior goods, a decrease in income will
A. cause beans to sell at a lower price.
B. increase the production of beans.
C. shift the demand curve for beans to the left.
D. shift the demand curve for beans to the right.
D. shift the demand curve for beans to the right.
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If the economy is on the LM curve, but is to the right of the IS curve, then the ________ market is in equilibrium, but aggregate ________ exceeds aggregate ________
A) goods; output; demand B) goods; demand; output C) money; output; demand D) money; demand; output
Assume Congress decides that Social Security taxes must increase in order to fund the system. This would
A) shift up the marginal cost curve for any firms that hire labor. B) guarantee a decrease in profits. C) shift up the average fixed cost curve for any firms that hire labor. D) guarantee an increase in tax revenues.