In the traditional Keynesian model, if the government increases government spending,
A) the C + I + G + X line will shift up but the aggregate demand curve will not shift.
B) the C + I + G + X line will shift down but the aggregate demand curve will not shift.
C) the C + I + G + X line will shift up and the aggregate demand curve will shift to the right.
D) the C + I + G + X line will shift down and the aggregate demand curve will shift to the left.
C
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If the Palace Cinema can sell 200 tickets at $4 and 300 tickets at $3, the demand for Palace Cinema tickets between the two prices is
A) elastic. B) inelastic. C) marginal. D) unit elastic.
"As Jake consumes more sodas over the course of a day, it is likely that his marginal rate of substitution of sodas for other goods will rise." Is the previous statement correct or incorrect?
What will be an ideal response?