In the above figure, the straight line between the lower left corner and the upper right corner shows
A) perfect equality in income distribution.
B) perfect inequality in income distribution.
C) that wealth rises as income rises.
D) that household size rises as income rises.
A
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Every spring, motorists do more driving than during the winter months. Every spring, the price of gasoline increases and the motorists buy more gasoline. This experience suggests that the
A) "law of supply" does not always hold for necessities like gasoline. B) "law of demand" does not always hold for necessities like gasoline. C) laws of supply and demand are both contradicted for gasoline, though only during the spring driving season. D) None of the above answers are correct.
Assume that the economy is in long-run equilibrium. A shift in the aggregate demand curve will change
A) only the price level in the long run B) only the output level in the long run C) both the price level and the output level in the long run D) neither the price level nor the output level in the short run E) only the price level in the short run and only the output level in the long run