??Exhibit 16A-2 Macro AD/AS Models
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?In Panel (b) of Exhibit 16A-2, a Keynesian expansionary stabilization policy designed to move the economy from Y1 to Yp would attempt to shift the

Peter consumes bags of potato chips and cans of soft drink. The marginal utility of bags of potato chips is 10 utils per bag and the marginal utility of cans of soft drink is 50 utils per can. Potato chips cost $0.50 a bag, and a can of soft drink costs

$1.00. What should Peter do? A) Peter should eat more chips, because they cost less. B) Peter should buy more chips and less soft drink. C) Peter should buy more soft drink, because it costs less. D) Peter should buy more soft drink and fewer potato chips.

Refer to the graph shown. An increase in U.S. income would shift:

A. S1 left and cause the euro to gain value. B. S1 right and cause the euro to lose value. C. D1 left and cause the euro to lose value. D. D1 right and cause the euro to gain value.