Assume the market is in equilibrium in the graph shown at demand D and supply S2 (at a quantity of 6). If the supply curve shifts to S1, and a new equilibrium is reached (at a quantity of 4), which of the following is true?
A. Total surplus would increase by $7.50.
B. Total surplus would decrease by $16.50.
C. Total surplus would increase by $32.
D. Total surplus would decrease by $14.00.
D. Total surplus would decrease by $14.00.
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The approach used in the U.S. to measure the economy's aggregate performance is
A) the total value of securities. B) national income accounting. C) to add up the value of intermediate goods. D) to add up the total value of financial transactions, transfer payments, and secondhand goods. E) all of the above.
Consumer spending is spending by ________ households on final goods and services produced ________
A) domestic; domestically and abroad B) domestic; domestically C) domestic and foreign; domestically and abroad D) domestic and foreign; domestically