Suppose that in 2011, 4 million plasma TVs were purchased at $950 each, while in 2012, 3 million plasma TVs were purchased at $800 each. What might have caused this change?
A) The price of LCD TVs (a substitute for plasma TVs) fell.
B) The price of LCD TVs (a substitute for plasma TVs) rose.
C) Plasma TV manufacturing technology decreased.
D) Plasma TV manufacturing technology increased.
A
Economics
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At a given output level, a temporary reduction in government purchases will
A) increase desired saving, causing the IS curve to shift down and to the left. B) increase desired saving, causing the IS curve to shift up and to the right. C) decrease desired saving, causing the IS curve to shift down and to the left. D) decrease desired saving, causing the IS curve to shift up and to the right.
Economics
What is the difference between the Keynesian and rational expectations theories concerning the success of stabilization policy?
Economics