Suppose nominal aggregate demand falls by 3 percent while nominal wages are fixed
If firms were to lower their prices by 3 percent, this would ________ the drop in real output, with such pricing ________ an assumption that firms are profit-maximizers. A) prevent, in violation of
B) prevent, consistent with
C) worsen, in violation of
D) worsen, consistent with
A
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Referring to the table above, if consumption in period one is zero, then consumption in period two cannot be greater than ________
A) $72,800 B) $70,400 C) $71,200 D) $70,800
When indifference curves are bowed in toward the origin,
a. consumers are less inclined to trade away goods they are lacking. b. consumers' willingness to trade away goods they have in abundance diminishes. c. an increase in income will shift the indifference curve away from the origin. d. a decrease in income will shift the indifference curve toward the origin.