What determines the magnitude of the changes in price level when central bank takes monetary policy measures that leads to a change in the aggregate demand?
A. Changes in the money supply
B. Slope of the aggregate supply curve
C. Rate of change of interest rate
D. Total money supply in the economy
Answer: B
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All else equal, an increase in the price of complementary products for the Apple Watch, such as Sensoria's wearable technology, would
A) shift the demand curve for the Apple Watch to the left. B) shift the supply curve for the Apple Watch to the left. C) shift the demand curve for the Apple Watch to the right. D) shift the supply curve for the Apple Watch to the right.
Exhibit 8-19 Long-run perfectly competitive industry
As shown in Exhibit 8-19, assume that a perfectly competitive industry is in long-run equilibrium at point A and the demand curve shifts from D1 to D2. The result is a long-run supply curve drawn from point:
A. A to point B. B. B to point A. C. A to point D. D. A to point C.