As John's income has increased, he has purchased fewer hamburgers. Hamburgers are
A) a normal good for John.
B) an inferior good for John.
C) not following the law of demand.
D) leading to a rightward shift in John's demand curve for hamburgers.
B
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Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The interest rate in the economy is 4 percent. What should the Fed do to achieve a noninflationary full-employment level of real GDP?
A. Increase the money supply from $75 to $150 billion
B. Increase the money supply from $150 to $225 billion
C. Decrease the money supply from $225 to $150 billion
D. Make no change in the money supply
Macroeconomists are more likely than microeconomists to deal with:
A. positive analysis. B. individual firms. C. the scarcity principle. D. aggregation.